The global Sony Music company was warned more than 20 years ago of serious complaints about the workplace culture at its Australian label overseen by its now sacked CEO Denis Handlin, Guardian Australia has learned.
Former employees believe a culture of intimidating behaviour and alcohol abuse was effectively allowed to continue for another two decades at Sony Music Australia, before the head office in New York launched an investigation into its Sydney operations earlier this year.
A statement from Sony Music Entertainment’s head office last week said the company was taking seriously allegations about the workplace culture from an undisclosed number of Australian employees and ex-employees. It said harassment, bullying and other inappropriate behaviour would not be tolerated by the company.
Earlier this week New York removed Handlin from his position as CEO of Sony Music Australia, and according to reports his son Pat Handlin, along with another senior executive, Mark Stebnicki, are now on indefinite leave from the company. Guardian Australia is not suggesting there are any specific allegations against Denis Handlin, Pat Handlin or Stebnicki.
New York was alerted to serious complaints about its Australian arm involving claims of bullying and alcohol abuse in the Sydney office in 1998, according to former Sony Music Australia executives.
They say that a delegation of 10 Australian Sony executives was then called to New York in two groups, and each executive was separately interviewed. The Guardian understands that the then-president of Sony Music and the global head of HR were present in at least some of those interviews.
“New York was alerted back in 1998 to problems with Handlin’s management style, resulting in him being suspended for about three months,” one member of the delegation of 10 told Guardian Australia. “It was common knowledge in the music industry at the time.”
Former employees have recounted serious complaints about Handlin’s allegedly intimidating behaviour towards his executive team, who were almost exclusively male for most of his 37-year reign at Sony Music Australia.
The Guardian has heard multiple allegations of angry, expletive-ridden meetings in the boardroom, intimidating and erratic behaviour, unreasonable pressure to consume alcohol and remain at work functions until the early hours of the morning, and threats to sack individuals.
It is alleged by former employees that when the delegation returned to Australia, New York placed Handlin on suspension for several weeks.
A Billboard magazine article dated 13 February 1999 reported that a recent two-month absence of Sony Music Australia’s boss had “led to a torrent of speculation about his future with the company”.
Responding in the Billboard article, Handlin explained he was absent because he was “run down, due to a punishing work ethic and an obsession with Sony’s performance”.
He added that New York had been “very supportive”.
“During that time, I was subject to some ridiculous rumors,” he is quoted as saying. “I was flattered by all that attention around the world, but those were only started by people who could be away for three years and no one would notice.”
Former employees who worked at Sony Music Australia at the time allege that during the suspension Handlin was told not to enter the company’s Sydney office or attempt to contact any employees.
It is understood that a senior executive from head office was flown to Australia to oversee the Sydney and Melbourne offices during the suspension.
In early 1999, it was announced that Handlin would be returning to his position as Australian CEO.
“On the day it was announced he was coming back, there was a sense of grievance and mistrust and let down that New York had allowed this guy back in the company,” a former executive told Guardian Australia.
“[Handlin] went through a process of apologies to senior executives around the country … it was pathetic because we all knew it wouldn’t last.”
According to former employees, New York gave assurances to some members of the delegation of 10 that they would not be punished for making complaints about Handlin.
It is understood that two of the 10 resigned immediately, and most of the remaining executives left the company in the following two to three years.
A music industry executive who dealt with the label throughout the 1990s said he recalled that about half a dozen people in the New York delegation told head office that if Handlin came back, they would leave.
“New York eventually chose Denis,” the source told the Guardian.
“New York may be seen to be doing the right thing now, but they’ve known about Denis and the culture in Sydney for a very long time, and could have brought it to a head over 20 years ago. They have a lot to answer for.”
Guardian Australia contacted Handlin for comment.
“The questions you raise go back over 20 years involving executives in Australia and the USA,” he said via text message.
“There was a full and lengthy inquiry at the time that saw me reinstated. In some cases the information you have been given is simply incorrect.”
Guardian Australia has gone back to Handlin asking him to clarify what information he is referring to.
A Sony employee who joined the company just after Handlin was allowed to return to his position as Australian CEO alleged he witnessed intimidating behaviour by Handlin in the workplace over the ensuing five years. He said he believes it had been a “terrible miscalculation” by New York to allow Handlin to return.
“It further enhanced the notion that he was untouchable. The only choice people had was to leave.”
On Friday, Sony Music Entertainment in New York responded to the Guardian’s questions with the following statement:
“We take all allegations of … inappropriate behavior from our employees very seriously and investigate them vigorously. Only recently did claims surface and we are examining them expeditiously.
“We are not in a position to comment further on allegations concerning matters which occurred over 20 years ago particularly given that the persons involved at that time are no longer at the company. To the extent these matters have been raised, Sony Music will be reviewing them.”
A senior Sony Music Australia employee who remained at the company for another decade after the alleged events of 1998, and reported directly to Handlin for most of this time, said Handlin’s controversial management style was well known for many years.
“We would have the heads of marketing of the different labels in London and New York in Australia, every quarter, every six months, and they saw how he treated people. They saw the fear, they saw the way he managed, and then they would go back and obviously tell their people, but there was this protectionism where it never got to any point when anyone at a senior level made a move.”
Another employee, who joined the company in the late 1980s and spent a period in the 1990s as Handlin’s executive assistant, told the Guardian: “Sony Music US knew about Denis over 20 years ago and elected not to do anything.
“They also promised us things would change [when Handlin returned from suspension], but that clearly didn’t last long. Denis got results, that was all Sony HQ cared about.”
