Lionsgate Signs Vice Chairman Michael Burns To 5-Year Contract
The exec who helped to engineer this year’s acquisition of Summit Entertainment and refinancing deals that lowered Lionsgate’s interest costs will be well compensated in the new agreement that runs through October 2017. He’ll receive a base salary of $1M a year and a bonus targeted at half of that, according to the company’s SEC filing. Lionsgate also awarded him options to buy nearly 1.9M shares, plus 130,000 restricted stock units. He has leeway to take a big part of his bonus in stock. Burns also has other incentives to try to raise the share price: He can receive a bonus of $700,000 if the volume-weighted average price exceeds $17.00 for six consecutive months, with an additional $700,000 if it crosses $20.00, and an equal hit if it exceeds $23.00 for half a year — a potential total of $2.1M. And every three months he’ll receive shares equal to $187,500 based on the closing price on the last trading day before the quarterly issuance date beginning this past Friday. “We’re delighted that Michael will continue to help guide Lionsgate’s growth through 2017,” says CEO Jon Feltheimer. “From serving as our public face on Wall Street to reducing our cost of capital to helping spearhead our transition to a digital world, Michael is the best partner I could ask for, and he works tirelessly to create long-term shareholder value.”
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