People to Watch in 2000

Who will make big news in the business world this year? Who will emerge from relative obscurity to become a major player? To start the new year, Times business reporters selected people from their beats who they believe will be among those to watch in 2000--in Southern California, across the country and around the world. Some are well known, having made big news in previous years. Others are not exactly household names but nevertheless are likely to make a major impact in their fields.

Of course, there’s no way to predict just what’s going to happen in the next 12 months. Nor can any such list be complete--there’s always the come-from-nowhere phenom who’ll surprise everyone. But it’s a good bet that if you follow the fortunes of these 22, you’ll see the top business stories of 2000 unfold.

Clive Davis of BMG’s Arista Records

All eyes in the record business will be focused this year on the fate of music industry veteran Clive Davis.

The 66-year-old executive is embroiled in a battle with Bertelsmann Music Group to keep his job running Arista Records, the New York label that he founded 25 years ago and transformed into the crown jewel of BMG’s global music empire. The brouhaha began several months ago when Davis, whose deal expires in June, rejected a succession plan proposed by the German conglomerate’s music chief, Strauss Zelnick, as part of his contract negotiation.

The clash is being viewed as a power struggle between Davis, an obstinate record industry veteran who has been involved in the success of dozens of rock and pop stars, and Zelnick, a Harvard business school graduate with no music experience who was recently promoted to head up BMG’s global record operation.

Davis’ fight with BMG has enraged many artists on the label, including Aretha Franklin, Whitney Houston, Carlos Santana and Patti Smith--who all have come out in force to voice their outrage over the prospect of his ouster. Some Arista acts have even threatened to quit, as have a number of executives at the label.

Should BMG actually force out Davis, he will have no problem setting up shop elsewhere. Executives at competing firms have privately lambasted Zelnick’s handling of the affair, with several already courting Davis behind the scenes with job offers.