Emmis Moves To Performance-Based Bonuses
April 12, 2010 at 4:24 AM (PT)
EMMIS COMMUNICATIONS has made public in a filing with the Securities and Exchange Commission, a change approved by its board of directors, in it's executive bonus plan. The new rules, which will affect people such as CEO JEFF SMULYAN and Pres./Programming RICK CUMMINGS, will make bonuses "based entirely on the attainment of specified EBITDA goals."
Based on the SEC filing, EMMIS will set quarterly goals for it's domestic and international radio, interactive, and total company EBITDA, and base bonuses on whether those goals were met. If so, the Compensation Committee would award the amount up to 20% of the participant's target bonus.
The board of directors will then look at years' end whether goals were reached, and if the annual bonus criteria is met, it will be the participant's annual target amount less any quarterly bonuses.
[Do you agree this is a good move? Do you have a performance-based bonus structure at your station? Please share your comments with the ALL ACCESS community below.]