Jeffrey Katzenberg has reached a contract extension with DreamWorks Animation, where his term as CEO will now run through 2017. Ann Daly’s term as COO has also been extended through 2017.
Katzenberg, who had been receiving $1 million per year, will receive an annual base salary of $2.5 million under the new agreement and will be eligible for annual cash bonuses of $4 million. He will also be eligible for long-term equity incentives of $4.5 million, reduced from $8 million under his previous agreement, according to filings with the U.S. Securities and Exchange Commission.
Katzenberg, whose previous contract had run through 2014, also will be compensated for such business expenses as private aircraft usage for business-related travel and security personnel.
Daly’s annual base salary is being increased from $1.012 million to $1.5 million, and she will be eligible for annual cash bonuses of $750,000 in 2012, increasing to $1.5 million in 2013. Additionally, she will be eligible for long-term equity incentives of $3.5 million annually, up from $2.5 million under her previous agreement.
The company also reached a new agreement with general counsel Andrew Chang that now runs through Jan. 1, 2016. Chang's salary increases from $460,000 to $550,000 annually beginning in 2013.
Under the new terms, if DWA undergoes a change of ownership, Katzenberg could collect his compensation for the rest of the existing contract or for two years, whichever is longer.