As he announced plans to step down as President and CEO later this year, Mark Mays reworked his employment contract with CC Media Holdings, the parent of Clear Channel Communications. Now the big question: Does he want the plane or not?
One provision of the amended contract dated June 23rd gives Mays the right to purchase Clear Channel’s Gulfstream IV jet aircraft, FAA registration N616CC, for fair market value at the end of his employment. Should Clear Channel receive a bona fide offer to buy the aircraft in the interim period, Mays will have a right of first refusal to match the offer. He must like that plane. A quick Internet check by RBR-TVBR found used Gulfstream IV aircraft selling in a range of $10-20 million.
Under his revised contract, Mays will continue as an employee of Clear Channel through July 31, 2013, even though he will no longer be CEO, but rather continue on as Chairman once his successor as CEO takes over. As Chairman he will be expected to work no less than 20% as much each month as he had as CEO.
Mays will be paid a base salary of not less than $1 million per year. His target bonus for 2010 is $2 million if the company hits its target for OIBDAN (Operating income before Depreciation and amortization, Non-cash compensation expense, and Other operating income) and could go as high as $4 million if the company achieves 120% of the target. In future years, his performance bonus will be entirely at the discretion of the board, but not less than a half million bucks.
Beginning August 15th, Mays will have the right to exercise put options relating to two chunks of restricted stock – 200,000 shares and 355,556 shares – but he is giving up half of his more than two million stock options.
RBR-TVBR observation: Do you suppose the new CEO will insist on a Gulfstream V? It appears Mark intends to do some traveling after cleaning out his desk.