Bob Pittman is already a pretty rich guy, so you knew he’d be getting a hefty package to persuade him to take the CEO post at CC Media Holdings and its subsidiary Clear Channel Communications. The terms, now filed with the SEC, show that Pittman has signed on through at least the end of 2016.
After December 31, 2016 the employment contract will automatically renew annually unless either CC Media or Pittman gives advance notice that they don’t want to extend the deal.
Here are the basic terms:
Pittman will receive a base salary at a rate no less than $1 million per year, which shall be increased at the discretion of CCMH’s Board or its Compensation Committee.
Pittman will also have the opportunity to earn an annual performance bonus for the achievement of “reasonable performance goals” established annually by the CCMH Board or its Compensation Committee after consultation with Pittman. The target bonus for achieving all goals will be not less than $1.65 million.
The Employment Agreement also entitles Pittman to participate in all pension, profit sharing, and other retirement plans, all incentive compensation plans, and all group health, hospitalization and disability or other insurance plans, paid vacation, sick leave and other employee welfare benefit plans available to other top executives at the company.
And yes, there is a company plane. CC Media “will make an aircraft (which, to the extent available, will be a Dassault-Breguet Mystere Falcon 900, pictured) available to Mr. Pittman for his business and personal use and will pay all costs associated with the provision of the aircraft. If a company aircraft is not available due to service or maintenance issues, CCMH will charter a private aircraft for Mr. Pittman’s business and personal use.”
The company will also make a car and driver available for Pittman’s business and personal use in and around the New York area as well as anywhere else on company business.
CC Media will reimburse Pittman for up to $25,000 of legal fees in connection with the negotiation of the Employment Agreement and ancillary documents.
As previously reported by RBR–TVBR Pittman received an option to purchase 830,000 shares of CC Media stock at an exercise price of $36. The stock closed Thursday (10/6) at $6.20.
RBR-TVBR observation: Nice salary and benefits but the Falcon 900 for business and personal use has to carry a hefty dollar value. The perks most likely out weigh the salary. OK, now we leave the rest of the observation up to you – Post your observation below.
(Side note: According to Facebook, Pittman has over 5,000 flight hours; currently holds an Airline Transport Pilot’s license for airplanes; and is rated for helicopters and 3 types of jets).
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