Arbitron has filed with the SEC a summary of its employment contract with new CEO Bill Kerr. The contract was signed February 11th, but is retroactive to January 10th and runs for an initial term of two years.
Kerr will receive an annual base salary of $800,000 and be eligible to receive an annual incentive bonus equal to 100% of his annual base salary upon meeting applicable performance criteria set by the board’s Compensation and Human Resources Committee. “For performance exceeding such applicable performance criteria, the annual incentive bonus will be increased up to a maximum of 200% of annual base salary, at the sole discretion of the Compensation Committee,” the filing stated.
And there’s more. “Subject to approval by the Compensation Committee, the Company also will grant to Mr. Kerr a long-term incentive award to be valued at $1,500,000 on the date of grant and to be divided into substantially the same mix of stock options, performance-based cash, and restricted stock units as apply to other senior executives (and with the restricted stock units also performance-based to the extent grants to other senior executives are subject to performance conditions) but with the restricted stock units in the form of DSUs payable only after Mr. Kerr’s separation from service,” the SEC filing explained.