Radio One, the media company specializing in reaching African American consumers, has seen its stock wildly fluctuate over the last 24 months.
After climbing above $4 a share in June 2015, ROIAK shares slumped to $1.19 a share by February 2016. By April 2016, Radio One stock was on the upswing, and closed on Feb. 1 at $2.90 a share, down a dime.
Meanwhile, Radio One is coming off a good news/bad news Q3 2016, with net revenue falling 4.3%, from $115.9 million to $110.9 million, while narrowing its net loss.
These financial positives led the compensation committee of Radio One’s Board of Directors to authorize several bonus awards for 2016, and we’ve got the details on who scored some significant additional dollars … and who failed to receive a bonus.
In making 2016 annual bonus decisions for Radio One CEO Alfred C. Liggins III and founder and chairperson Cathy Hughes, the compensation committee considered the applicable performance criteria as set forth in their respective 2008 employment agreements.
The compensation committee also made the following observations in determining performance-based bonus compensation:
- The 2016 operating performance of Radio One on a consolidated basis. In this regard, the committee noted that the company delivered EBITDA at 100% of budget.
- Radio One experienced improved free cash-flow performance
- Expense management and cost containment objectives were met in full.
- Radio One saw an 80% share price improvement.
With respect to the discretionary portion of the CEO’s 2016 bonus, the Compensation Committee considered a number of other factors, including Radio One’s successes with a number of key vendors; political over-performance; and the “favorable performance” of the company’s Reach Media.
With all of the above factors in mind, Liggins’ bonus is $1.25 million. Hughes’ bonus is $500,000.
This represents a 100% payout of their bonus potential.
Meanwhile, the bonuses payable to CFO Peter Thompson, Chief Administrative Officer Linda J. Vilardo, and Radio Division CEO David Kantor were also considered and determined in the discretion of the compensation committee.
Thompson and Vilardo were each awarded a cash bonus in the amount of $300,000.
However, Kantor did not receive a bonus for the 2016 calendar year.
The committee determined that this was the result of the combined radio and Reach Media segments’ failure to achieve segment EBITDA as set forth in the company’s 2016 budget.
Radio One did not elaborate on the bonuses.