By law, publicly traded companies must disclose compensation — including year-end bonuses for key executives — via an 8-K filing with the Securities & Exchange Commission.
That makes Tuesday, Jan. 10, 2017 a very special day for individuals curious as to how the leaders of some of the big radio companies fared.
At iHeartMedia, the payouts are impressive based on retention bonus approved for senior managers.
What’s even more noteworthy are the Key Employee Incentive Plan bonus that President/CEO Bob Pittman and President/COO and CFO Rich Bressler are pocketing.
On Jan. 12, Pittman received a retention bonus of $1,750,000. Bressler did as well, pocketing the same amount.
Steven J. Macri, iHeart’s SVP/Corporate Finance, took home a $750,000 retention bonus.
Recipients are required to repay 100% of the after-tax value of this retention bonus if their employment terminates before the second anniversary of the effective date.
Those amounts are peanuts compared to the dollars approved by iHeart’s Board of Directors in its 2017 Key Employee Incentive Plan.
The EIP bonus to Pittman and Bressler are $7 million and $3 million — considered a “Target Bonus.”
The Incentive Plan began on Jan. 1 and continues through the end of 2017. Each participant in the plan will have the opportunity to earn a quarterly performance bonus of 25% of the applicable target bonus for each quarter in 2017, depending upon the extent to which a quarterly performance goal based on the relevant metric has been achieved for such quarter.
If the target goals for each quarter is exceeded, a “catch up” payment will be given.
The applicable metrics will be established by the iHeart Board of Directors’ compensation committee after meeting with Pittman.
The “catch up” payments allow participants to earn any portion of the quarterly bonus that was not fully earned in a prior quarter, but not more.
In order to earn any quarterly performance bonus, a participant must remain employed by iHeart through the end of the applicable quarter.