Bob Sillerman’s new Function (X) doesn’t plan to have its first mobile app into the market until Q3, but its top executives won’t have to wait for a big payday. They’ve got employment contracts which provide not only cash, but lots of shares of stock.
Having closed the deal to take control of the former Gateway Industries, Sillerman is now Executive Chairman and a director of Function (X) – not to mention the holder of $3.12 billion of stock that cost him $3.6 million. Janet Scardino, pictured, whose resume includes executive posts at MTV and “American Idol” creator 19 Entertainment, is CEO of Function (X).
Sillerman’s employment agreement calls for an annual base salary of $1 million and Scardino’s half that. Sillerman will receive a grant of not less than five million shares of restricted stock vesting over five years, plus an unspecified annual cash bonus.
“The Executive at all times shall be entitled to: (a) charter a private flight when the Executive travels; (b) to hotel accommodations while outside New York on business at a full-service hotel offering a hotel suite with sufficient space, furnishings, and technological facilities and appointments for the Executive’s comfortable and productive work in the room; and (c) private car service when required to travel in connection with the Employer’s business, attend business meetings, or work or attend functions outside of normal business hours or on weekends or holidays,” reads Sillerman’s employment contract.
Scardino’s $500,000 base salary is to increase at least 5% annually and she has a target annual bonus of 50% of her base salary. She is to receive at least 750,000 restricted shares vesting over three years, plus an additional 250,000 each year, also vesting over three years.
She, however, has to use scheduled airlines. “The Executive at all times shall be entitled to: (a) travel in business class seating (or its equivalent) on a reputable airline when the Executive travels on domestic flights more than three hours in length in connection with the Employer’s business; (b) to hotel accommodations while outside the Metropolitan Area on business at a full-service hotel with sufficient space, furnishings, and technological facilities and appointments for the Executive’s comfortable and productive work in the room; and (c) private car service when required to travel in connection with the Employer’s business, attend business meetings, or work or attend functions outside of normal business hours or on weekends or holidays,” reads Scardino’s contract.
