Saga Communications has cut a new employment agreement running nearly seven years with founder, Chairman, President and CEO Ed Christian. Since Saga employees had to take a pay cut, he’s taking one too.
“Under the terms of the new employment agreement, Mr. Christian continues as Chairman, President and CEO of the Company. The new employment agreement provides for an annual base salary of $860,000 per year. Mr. Christian has agreed to a 2.5% reduction to his base salary in conformance with the same current reduction to salary taken by all of the Company’s employees. Mr. Christian may defer any or all of his annual salary. On each anniversary of the new employment agreement, the Compensation Committee shall determine, in its discretion, the amount of any increase to Mr. Christian’s then existing annual salary provided, however, that such increase shall not be less than the greater of 3% or a cost of living increase based on a consumer price index,” the company said Thursday (6/23) in an SEC filing.
Christian will also be eligible for an incentive bonus to be determined annually by the Compensation Committee of the board of directors. The maximum bonus is equal to 100% of his salary.
The new contract was agreed to on June 17th. It is effective from June 1, 2011 and runs through March 31, 2018.