Starting Monday, Cumulus Media will have a new EVP/CFO in place. He’s an individual who had served in a similar role at Univision Communications until two years ago, and spent more than two decades before that at Goldman Sachs.
While news of the appointment arrived Thursday (3/19), an SEC filing made Friday revealed just how much Cumulus’ newest C-Suite executive will make.
The filing also disclosed CEO Mary Berner‘s new employment agreement and salary.
Effective March 23, Francisco López-Balboa will serve in a role held most recently by John Abbot. Abbot departed following the release of Cumulus’ Q4 and full-year 2019 earnings results, in early March.
Sallie Kimbrough has temporarily been serving as CFO over the last few weeks. She’ll continue as Cumulus’ VP/Finance and Chief Accounting Officer and Vice President, reporting to López-Balboa.
On Thursday, López-Balboa signed off on an employment agreement that has an initial three-year term, and a provision for automatic 1-year extensions.
What’s his paycheck?
“Pursuant to the agreement, Mr. López-Balboa is entitled to receive an annual base salary of $800,000, effective as of the commencement of Mr. López-Balboa’s employment, and subject to increase from time to time by the compensation committee of the Board of Directors,” Cumulus said in a SEC filing.
That’s before a cash bonus based on performance goals.
“The annual cash bonus would be calculated as a percentage of Mr. López-Balboa’s base salary, with a target award opportunity of 100% of his base salary and a maximum award opportunity of 150% of his base salary,” Cumulus said.
There’s more: López-Balboa will also receive an initial grant of options to purchase 60,000 shares of Cumulus’ Class A common stock at an exercise price equal to not less than fair market value on the day of the grant, subject to vesting and exercise conditions to be contained in the award agreement pertaining to such grant.
In addition, López-Balboa will receive a one-time grant of 60,000 restricted share units, subject to the terms and conditions contained in the restricted stock unit agreement pertaining to such units.
THE CEO’S NEW DEAL
March 19 also saw Berner extend the term of her role as President/CEO through Dec. 31, 2022.
The new agreement is retroactive to Jan. 1, and contains a provision for automatic extensions for one-year periods.
Berner’s base salary: $1.45 million, before a cash bonus and equity awards.
Berner will be based in New York, traveling to Cumulus’ Atlanta headquarters and other markets where the company owns stations, once coronavirus-related restrictions are lifted.
