Schulhof Is New CBS Records Chairman

In a move that further strengthens Sony Corp.’s control over its CBS Records unit, the Japanese consumer electronics giant has appointed its top U.S. executive, Michael P. Schulhof, chairman of the record label, effective Jan. 1.

Schulhof, currently vice chairman of Sony U.S.A., had been widely rumored to take the helm at CBS Records after the departure in September of Walter R. Yetnikoff, the volatile chief executive of the record company. The company, which which operates the Columbia, Epic, WTG and Sony Classical labels, will be renamed Sony Music Entertainment Inc. on Jan. 1.

Schulhof, 48, spearheaded Sony’s $2-billion purchase of CBS Records in 1988 and is considered one of Sony Chairman Akio Morita’s most trusted lieutenants.

Schulhof is the only U.S. citizen serving on Sony Corp.’s 15-member board and is said to be one of the few Americans regularly involved in high-level decision making at a major Japanese company.

Currently, Sony Corp. president Norio Ohga serves as chairman of CBS Records. But Ohga said “it has become increasingly difficult for me to dedicate sufficient time to Sony Music Entertainment’s operations” because of the growth of the music unit and demands on his time from Sony Corp.

In his new role as chairman of CBS Records, Schulhof “will be active” in daily management “and be a part of any major decisions,” said Sony U.S.A. spokesman Robert Zito. However, Schulhof will keep his current title and managing Sony U.S.A. will remain a responsibility, Zito said.