As shareholders of Citadel Broadcasting watch their shares trade on Wall Street for pocket change, the directors of the company have been handing out new stock grants to the top executives.
CEO Farid Suleman received four million additional shares. Two million are restricted shares which will vest over three years. The other two million are performance based shares which will vest only when the company’s stock trades at $7.50 or better for more than five consecutive days. In fact, the share price has gone the other way from the price of $1.72 on the day the grants were made. In all, Suleman has 8,323,115 shares of Citadel, including unvested grants.
COO Judy Ellis received 125,000 performance based shares which vest in three annual portions based on achievement of certain performance objectives. In all, Ellis has 345,135 shares, including unvested grants.
RBR/TVBR observation: Well, if Farid were to get the stock back up to $7.50 (the grant has a seven year deadline) he would probably make shareholders, including employee-shareholders, happier campers. Can he do it? Will the shareholders wait that long without revolting? But more importantly how does this look to the 5,000 or so employees at Citadel. The boss getting patted on the back for bottom door performance. Only thing we can say – It is what it is.