Mark, Randall Mays Take Pay Cuts
January 22, 2009 at 5:06 AM (PT)
A day after laying off 1,850 employees, CLEAR CHANNEL COMMUNICATIONS CEO MARK MAYS and CFO RANDALL MAYS presented the SEC with a public filing that lowered their compensation, trimming their base salaries by more than 40% this year and slashing the size of their bonuses.
The MAYS brothers will receive $500,000 each this year in base salary; before MARK MAYS was due $895,000, while RANDALL was due $875,000. After this year, their minimum base salaries rise to $1 million.
According to the WALL STREET JOURNAL, bonuses for each MAYS will based on earnings before income, taxes, depreciation and amortization, instead of operating income before depreciation and amortization, noncash compensation, and gain or loss on disposition of assets. The new benchmark for bonuses is if the company achieves more than 90% of its earnings targets -- instead of at least 80% of its operating income targets.
The bonus will be $2 million for each if the company meets 100% of its target. The better CLEAR CHANNEL does, the bigger the bonus, with a bonus ceiling of $4 million. Under the old schedule, the bonus started at $6.63 million for achieving 80% of operating income.
The company called the move "an act of leadership during a time when the company is facing challenging economic conditions."