RBR-TVBR Analysis (first)
Now that Bob Pittman is an officer and director of CC Media Holdings and its Clear Channel Communications subsidiary he’s made filings with the SEC detailing his holdings in the company. Some of it was already known, but the new revelation says something about the challenge he faces in growing the company.
Back when Pittman signed on last year as Chairman of Media and Entertainment Platforms for Clear Channel he made a personal investment of $5 million in CC Media stock. That bought him 706,215 shares at about $7.08 per share, a slight discount to the market price at the time.
According to his new SEC filing, Pittman still owns exactly 706,215 shares. At Wednesday’s (10/5) closing price of $5.80 his $5 million investment is worth $4.1 million.
As of October 2nd, when Pittman was named to his new position of President, CEO and Director, he received 830,000 in new stock options, vesting in five equal annual installments. Those options, issued under the Clear Channel 2008 Executive Incentive Plan, have an exercise price of $36 per share (the price of the private equity LBO), so Pittman will have to drive the stock price a lot higher to derive any benefits from those options.
RBR-TVBR observation: You may recall that CC Media/Clear Channel early this year allowed employees to re-price half of their options to a $10 strike price from the previous $36. Clear Channel Radio CEO John Hogan took the company up on the offer, as did many other management employees. However, the re-pricing offer specifically excluded members of the Board of Directors. Welcome to the board, Bob. Now let’s see if Pittman can make all these parts work because as RBR-TVBR analysis: What’s next for Bob Pittman’s Clear Channel? – it is now on Pittman’s watch.
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