Man Behind the Music Shake-Up

It was a quiet, little-known record producer from Nashville who united the Grammy board to oust powerful President C. Michael Greene.

Grammy Chairman Garth Fundis had been among Greene’s strongest supporters until this month, when he decided to call an emergency board meeting to address sexual harassment allegations against the controversial Grammy chief.

The behind-the-scenes battle climaxed Saturday when Greene suddenly resigned with an $8-million severance buyout approved within hours by 38 trustees who had flown in from 12 chapters across the nation to attend the unprecedented meeting.

Fundis released a statement Sunday saying that an independent investigation had cleared Greene of any wrongdoing--but never said why Greene was stepping down. On Monday, Greene said goodbye to his staff at the Santa Monica headquarters of the National Academy of Recording Arts and Sciences and left the building.

Many questions surround Greene’s sudden exit, but probably the biggest is how Fundis was able to pull off the coup.

Greene was well-known throughout the industry for his autocratic style, which never had been challenged in his 14 years on the job, Grammy sources said. Critics usually quit or were forced out, they said.

“Garth deserves a medal for this,” said Spectacor Group head Adam Sandler, a former vice president at the Grammy organization. “He went into that life-sucking vortex of the old academy and stood up and did the right thing--and emerged with his reputation and his soul intact.”

Fundis, who is an unpaid volunteer at the nonprofit group, declined to comment--except to ask that The Times “please” not write a story about him. That is true to form, say longtime friends and associates.

They describe Fundis as a shy, private man without a political bone in his body, a music lover who took on the Grammy chairmanship with the hope that he might be able to help the artistic community. He owns a small studio in Nashville and has produced records for such country stars as Don Williams, Trisha Yearwood and Alabama. Fundis is known for his methodical and introspective way of dealing with artists and their egos.

Fundis’ life, however, changed July 25 after he received a letter from attorney Gloria Allred saying that she was about to file a lawsuit against the academy. According to the letter, Greene allegedly had battered and sexually harassed her client, Jill Marie Geimer, an executive who ran the academy’s human resources department.

Greene denied the allegations, and the academy attempted to resolve the matter quietly. By November, however, Fundis advised the board to pay Geimer $650,000. That followed a settlement conference at which Geimer’s lawyers presented accusations involving at least two other female executives whom Greene allegedly harassed and forced out of the organization during the mid-1990s.

Fundis advised the board to hire a professional private investigator to look into harassment allegations involving Greene. The investigator interviewed dozens of employees and put together a report, which was delivered several weeks ago to an advisory committee run by Fundis.

Grammy sources said Fundis notified Greene that he intended to fly in the board for an emergency trustee meeting to address the report’s findings. Two weeks ago, members of the advisory committee suggested to Greene that he should consider resigning before the board met--an offer he rejected, Grammy sources said.

A behind-the-scenes battle broke out between Greene and the advisory committee run by Fundis. Grammy sources say Greene began telling his staff and trustees that Fundis was out to get his job.

Music sources in Nashville say the standoff cost the unpaid chairman time and money. They say Fundis put his business on hold and spent hours trying to negotiate a solution.

The longer the showdown went on, the uglier it got, according to people familiar with the situation.

Because Greene had been interviewed by the investigator, he was aware of the allegations that might be raised in the report’s findings. In the days leading up to Saturday’s meeting, Greene’s attorneys told the academy that he might sue if any information from the report became public, sources said.

Fundis held firm in his pledge to present the results to the board Saturday--with the inference that the board would follow with a vote on Greene’s fate, Grammy sources said. Greene’s attorneys entered into negotiations Thursday and arrived at an exit deal by late Friday night, sources said.

Saturday, Fundis informed the board that Greene would be present for the report’s findings and planned to resign. After Greene gave his resignation speech and left the room, the board approved his buyout.

Those who know Fundis applauded his handling of the shake-up. “Garth is a very fair, stand-up guy,” RCA Nashville Chairman Joe Galante said. “I’ve known him 17 years. This was a tough situation, but I guarantee he did his homework before taking any action. The thing he cares the most about is the truth, not political innuendo. The guy is a true gentleman.”