L.A. Reid, new CEO of Epic Records, is getting his label in order, and before he even targets artists, he’s letting his staff know that he wants to keep the environment “sexy.”

So does that mean the statement Reid allegedly told his staff, “I don’t want no ugly people working here; I only want good-looking people” is factual?

Considering this is the same man that dropped Lady Gaga, cited her as unattractive and told her, “I don’t get you, I don’t get your music,” according to a source, it could be true that he only wants beauty around him.

Reid is also a judge on “X-Factor” this season and is said to be more harsh than Simon Cowell. Some Epic records staffers are concerned about the time he will sacrifice at the label to work with the television show.

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

A Reid source said that the “ugly people” comment was made up by someone with an agenda, but supposedly L.A. was making a joke.