A former McKinsey & Company management consultant who later served as CFO of HD Radio developer iBiquity Digital Corp. has agreed to a two-year contract extension as Jeff Smulyan’s No. 2 leader at Emmis Communications.
Patrick Walsh, who joined Emmis in Sept. 2006 as CFO, added COO duties in December 2008. In July 2015, he added the title of President and shed his CFO role, which went to Ryan Hornaday.
Walsh’s new deal, signed Aug. 1, keeps him at Emmis through July 31, 2019.
Walsh’s annual base compensation is $625,000, with annual increases of up to 2.5% agreed to.
Emmis retains the right to pay up to 10% of Walsh’s base salary in shares of common stock, and has the right to pay any incentive compensation in cash or shares of Emmis common stock.
Walsh also on Aug. 1 received an option, which vests at the end of the two-year term, to acquire 62,500 shares of Emmis common stock, as well as a restricted stock award of 176,679 shares of Emmis common stock — half of which are to vest upon the first anniversary of the grant and the other half are to vest upon the completion of the two-year term.
Walsh continues to receive an automobile allowance of $1,000 per month and is reimbursed for up to $5,000 per year in premiums for life and disability insurance and professional fees related to estate planning.
The agreement was struck on the same day that Emmis completed the sale of KPWR-FM 105.9 “Power 106” in Los Angeles to affiliates of the Meruelo Group for $80.1 million. After payment of transaction costs and withholding for estimated tax obligations, net proceeds totaled $73.6 million and are being used to repay term loan indebtedness under Emmis’ senior credit facility, the company reported in an SEC filing made Aug. 3.