Live Nation CEO Michael Rapino Inks Rich New 5-Year Contract Extension
- Oops!Something went wrong.Please try again later.
Live Nation CEO Michael Rapino has inked a new five-year contract extension with the live events giant and owner of Ticketmaster and Roc Nation, keeping him at the helm of the company through the end of 2027.
The deal includes a significant increase in compensation for Rapino, with an annual target payday of $30 million if performance metrics are met (the actual number could be higher or lower, depending on the company’s performance).
More from The Hollywood Reporter
Live Nation Halts Business With Russia in Wake of Invasion in Ukraine
Live Nation Accused of Shutting Out Venues That Don't Use Ticketmaster
Rapino’s salary remains unchanged from his last contract at $3 million per year, but the annual target cash bonus is being bumped from $6 million per year under the prior deal to $17 million per year under the new deal. Beginning in 2023, Rapino will also be eligible for an annual grant of restricted shares valued at no less than $10 million. For both the RSUs and the cash bonus, performance metrics will be used to calculate the final payout. According to a copy of the contract filed with the SEC, the performance RSUs will be based on Live Nation’s stock price.
Rapino will also be getting a onetime $6 million signing bonus, and some time-based RSUs. The new deal received unanimous approval from Live Nation’s board, with Rapino abstaining, per the filing.
“Rapino successfully steered Live Nation through two years of pandemic shutdown, emerging better positioned than ever and on pace for a record year in 2022 with over 100 million fans across 45 countries,” the company said in a statement Thursday. “Similar to past contracts, 90% of Rapino’s total compensation is tied to continued growth and delivery of shareholder value. Live Nation has a long track record of delivering value for both artists and shareholders – in the last 10 years Live Nation has invested over $45 billion to pay artists and promote their shows, and the company’s stock posted an annual average return of 25%, more than doubling the return of the S&P 500.”
The CEO joined Live Nation in 2005, shepherding its merger with Ticketmaster in 2009. He last signed a contract in 2017.
Live Nation has had a rebound year as live concerts and other events returned to a post-pandemic normal. In Q1 it recorded revenue of $1.8 billion, up from $290 million in the same quarter a year earlier. The number of fans attending events still isn’t quite back to 2019 levels, but the pent-up demand means that the company is extracting more per customer than it did before.
