’Twas two nights before Christmas and in Bala Cynwyd, Pennsylvania the lawyers were stirring at Entercom Communications headquarters. When what to our wondering eyes should appear but new employment contracts for CEO David Field and CFO Stephen Fisher.
Both contracts (signed 12/23 and reported in an SEC filing 12/29) are for an initial term of three years, although Fisher’s term actually begins March 1, 2011, with automatic one-year renewals thereafter if neither side gives notice.
Field’s base salary is unchanged from the most recent year at $791,723, with annual increases of 3% coming each July. He is eligible for an annual cash bonus of up to 150% of his base salary.
He has received 675,000 restricted stock units. At the 12/29/10 closing stock price of $11.51, those restricted shares were worth nearly $7.8 million. 450,000 of them will vest 50% in two years and 25% each of the following two years. The remaining 225,000 will vest on or after December 15, 2012 if certain performance targets tied to stock performance are met. If the three-year compound annual growth rate (CAGR) is 8% or better Field gets a third; 12% or better another third; and 16% or better the remaining third.
For Fisher, his annual base salary goes to $556,200 (from the current $540,000) on March 1, with annual increases of 3%.
The CFO has received 275,000 restricted stock units, worth nearly $3.2 million at the 12/29 price. 200,000 will vest on various dates from May 31, 2011 through February 28, 2014. The remaining 75,000 will vest on or after July 15, 2012 if certain CAGR targets are met for stock performance – the same percentages for each third as for field above.
To the top of the radio tower! Now back to Wall Street! Now dash away! dash away! dash away all!
And I heard them exclaim as they rode out of sight, may three years of joy for Entercom stockholders bring those restricted stock units into the money!