Clear Channel Cuts Mays Severance Packages
May 2, 2007 at 5:45 AM (PT)
LOWRY, MARK, and RANDALL MAYS have agreed to lower their severance deals with CLEAR CHANNEL COMMUNICATIONS under pressure from investors unhappy with the "golden parachutes," reports the WALL STREET JOURNAL.
The MAYSES have agreed to give up options to buy one million shares or receive an equivalent value in restricted shares upon termination or change in company control, and the agreement is effective even if the deal to take the company private is rejected by shareholders on MAY 8. The trio is also reducing the lump-sum severance payout from 7.99 times base salary and bonus to 2.99 times base salary and bonus and is also giving up the right to get income tax assistance from the company upon termination.
The company also reiterated to investors that the company desires to keep a MAYS at the helm in the event that LOWRY MAYS ceases to serve as Chairman, saying that if LOWRY is gone, either MARK or RANDALL will be named Chairman.