Arbitron filed with the SEC its new bonus plan for top executives that ties payouts to three factors: the company’s earnings per share (weighted 30%), revenue (weighted 10%), and commercialization of its Portable People Meter-based radio ratings service (weighted 60%).
Under the previous bonus plan, PPM had been weighted 20% and the related Project Apollo 10%, so the board of directors has ratcheted up the importance of the PPM rollout, which hit a road bump that delayed the schedule nine months, with the next markets set to implement PPM as ratings “currency” in September.
The new target Incentive Plan payment for CEO Stephen B. Morris, the Company’s Chairman, President, and Chief Executive Officer is equal to 75% of his base salary, 654,011 this year. The target Incentive Plan payments for other executive officers range from 45-55% of base salary. Arbitron’s other executive officers include Pierre Bouvard, President of Sales and Marketing; Owen Charlebois, President of Operations, Technology, and Research & Development; Sean Creamer, Executive Vice President of Finance and Planning and CFO; and five other Executive Vice Presidents.