Company Town

Music: Arista Records chief Clive Davis, who Tuesday night hosts the label’s gala Grammy bash at the House of Blues, can afford to pick up a tab or two from now on. The 61-year-old industry leader is expected to have signed by then a contract worth an estimated $50 million that will keep him tied to parent Bertelsmann Music Group until the turn of the century. Under the contract, sources say, Davis will receive an annual salary of $5 million plus a signing bonus of more than $15 million to be paid out over the next five years. If Davis can keep Arista on its current course, sources say, he could earn an additional $10 million and bonus when his contract expires.

* Royalties: In a boost to artists’ rights, Sony Music Entertainment is expected to disclose soon a “royalty reform program” designed to eliminate outstanding debts and raise royalty rates to 10% for veteran rhythm and blues acts whose music is distributed by the Japanese conglomerate.