Pay cut for Suleman at Citadel


The CEO did not receive a bonus in 2007, although the compensation committee of the board of directors had set a target of 1-2 million bucks for the year. However, the compensation committee did in November vest 416,667 of the 1.25 million restricted shares granted to Suleman in March 2006, but subject to performance for vesting. The CEO received a base salary of $1.25 million and “other compensation” of $9,965,925, bringing Suleman’s total for the year to $11,215,925, down from the total of $17,936,993 in 2006, which had included over $12.8 million from the stock grant. That “other compensation” includes dividends on restricted stock, a “gross-up” for tax liabilities, the value of personal use of corporate aircraft, matching contributions to the Citadel 401(k) plan and a life insurance premium.

COO Judy Ellis, meanwhile, received a total of $2,064,755, up from $1,889,208 the previous year. She got the same base pay of $500K and $200K bonus as the previous year, a bit smaller stock grant, but more in “other compensation.”

RBR/TVBR observation: It was an unprecedented shareholder uprising against Michael Eisner at the Disney annual shareholders meeting in 2004 that led to his early departure. Many of those Disney shareholders are now shareholders of Citadel by virtue of the Citadel shares they received when ABC Radio was spun off from Disney and merged with Citadel. But if those shareholders are hoping to vote against Suleman May 19th as they did against Eisner, they are going to be disappointed. He won’t be on the ballot. Citadel has staggered three-year terms for its directors. CEO Suleman isn’t up for re-election until 2009. The three directors facing shareholders for re-election next month are Michael J. Regan, a former KPMG executive; Thomas V. Reifenheiser, a former Chase Securities executive; and Herbert J. Siegel, former Chairman of Chris-Craft and BHC Communications.