Will Other Companies React To Cumulus’ Quarterly Incentive Plan?


With rumors still swirling that Cumulus Media co-founder Lew Dickey Jr. is contemplating a plan to regain control of the company via his new blank-check publicly traded operation, Modern Media Acquisition Corp., the beleaguered No. 2 broadcast radio company by number of stations late Wednesday made a revelation by way of an SEC filing. On May 18, the company’s Board of Directors shifted to a quarterly incentive plan for its key executives.

With the broadcast radio business once again fragile due to soft comps in a non-political year, and new noise from “debt-bomb duo” compatriot iHeartMedia over that company’s Five Series of Priority Guarantee Notes and its Senior Notes Due 2021, could other companies follow a similar—yet uncommon—approach to bonus pay?

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