Freshly-appointed CEO of Epic Records, L.A. Reid, has already caused controversy two weeks into the job. The “X Factor” judge allegedly joked, “I don’t want no ugly people working here; I only want good-looking people.”

“He considers himself an artist, which means he expects to be treated like a VIP. He’s incredibly difficult, and many people are worried about what will happen when he starts on the judging panel for ‘X Factor,’” said an anonymous industry insider.

The remark was not the only source of concern surrounding Reid – his public dislike of Sylvia Rhone is expected to become a sore spot when she takes her place at Portrait, Epic’s sister label. Sony CEO Doug Morris, who appointed Rhone, reportedly told Reid that there was “nothing you can do about it” at the time of Rhone’s appointment.

In his time at Island Def Jam, Reid dropped Lady Gaga from the label after telling her, “I don’t get you, I don’t get your music.” The fact that he did not find her to be attractive is perhaps a sign that his intent to purge Epic of the homely may not be a joke after all.

In any case, Reid is expected to replace Simon Cowell as reality TV’s new bad guy. A representative for the show said:

“The excitement certainly continues to grow for ‘X Factor.’ We love L.A., and he’s fantastic on camera.”

A Reid source has denied the comments, while a Sony rep declined to comment.

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