In an 8K SEC filing, The Radio One compensation committee detailed bonuses awarded to top executives in 2012. CEO Alfred Liggins will receive a 2012 bonus of $1.5 million; Founder Cathy Hughes gets $500K–both representing a full payout of their bonus potential.
The committee decided to award Hughes $500K because of her “strategic leadership, guidance, and promotion of the company.” She’s also been actively involved in the sales activities of One Solution, the company’s national sales platform. “The Compensation Committee determined that the Founder has been an integral part of the One Solution sales team and her efforts have resulted in significant advertising commitments and revenue generation.”
For Alfred’s bonus, the committee looked at the radio division’s 2012 operating performance vs. its 2012 business plan: “In this regard, the compensation committee noted that the radio division had met its EBITDA plan for the calendar year-ended December 31, 2012.”
The committee also noted that for Q4, core radio revenues were up by 11.0% and the company outperformed the markets in which it operates by 820 basis points leading to revenues being up 7.0% for calendar year 2012 versus a 0.9% increase in revenues in the markets Radio One operates.
At TV One, the committee noted that revenues were up 8% and the division’s EBITDA increased to $40 million. And at Interactive One, the committee noted that the business generated $19.9 million in net revenue for the year, compared to $17.5 million during the same period in 2011, an increase of 13.7%. However, the committee also noted that the internet business underperformed with respect to budgeted revenue and EBITDA goals.
With respect to the discretionary portion of the CEO’s 2012 bonus, the committee considered a number of other factors, including but not limited to: the Company’s significant over-performance versus the markets in its core radio division; the sale of the assets of one of its Columbus, Ohio radio stations, WJKR-FM (The Jack, 98.9 FM); the company’s purchase of additional shares of Reach Media, Inc. increasing the company’s ownership in Reach Media from approximately 53% to 80%; the company’s restructuring of its syndication programming network to more effectively leverage its corporate sales team; the Company’s successful LMAs in the Detroit and Charlotte markets, each leading to enhanced revenue generation in those markets; the company’s continued successes in cost containment efforts, including cost reductions associated with the CEO’s assumption of additional duties; and the company’s successes in making certain operational personnel adjustments and new hires. CFO Peter Thompson and Chief Administrative Officer Linda Vilardo recently scored bonuses of $250K each.