New Contracts For Citadel's Top Executives
June 10, 2010 at 4:01 AM (PT)
CITADEL BROADCASTING's emergence from Chapter 11 bankruptcy comes with new employment contracts for CEO FARID SULEMAN and other top company officials, according to a filing by the company with the SECURITIES AND EXCHANGE COMMISSION.
SULEMAN has inked a five-year deal with automatic one-year extensions, with a base salary starting at $1.25 million plus an annual performance-based bonus ($2 million as a bonus target for 2010) and stock options. He is not restricted by a noncompete clause after termination, although the company has the option of paying him his base salary for 12 additional months to keep him from taking a job with a competitor.
Also signing three-year deals were COO JUDY ELLIS (base salary starting at $500,000, bonus target for 2010 $200,000), CFO RANDY TAYLOR ($400,000, plus $200,000 target bonus), General Counsel JACKIE ORR ($350,000, plus $200,000 target bonus), and SVP/Finance and Administration PATRICIA STRATFORD ($200,000, plus $125,000 target bonus). All are also entitled to stock options.
The top executives also have the right to terminate their contracts within 90 days in the event that SULEMAN is fired or resigns the CEO post for good reason, in which case the executives would get lump sum payments equal to their base salary and a pro rate target bonus for that calendar year, and if they leave if SULEMAN voluntarily reigns, the execs could elect to leave and get a lump sum payment of half the yearly salary plus the pro rata target bonus.
Also part of the reconstituted company is a reconstituted board; Departing from the company's board are J. ANTHONY FORSTMANN; THEODORE J. FORSTMANN; MICHAEL MILES; MICHAEL J. REGAN; THOMAS REIFENHEISER and WAYNE T. SMITH. The new board includes SULEMAN, WILLIAM M. CAMPBELL, III; GREG MRVA; PAUL N. SALEH; JONATHAN MANDEL; JOHN L. SANDER and DOREEN WRIGHT.
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