Time Warner’s New Contract With Jeff Bewkes Boosts Long-Term Compensation
Time Warner just disclosed a few more details about the new employment agreement it announced last week, which is designed to keep Jeff Bewkes as CEO through 2017. Although Bewkes‘ base salary remains $2M a year, and his target bonus stays at $10M, the target for his long-term compensation increases to $16M a year from $10M the company says in an SEC filing. Last week Time Warner didn’t mention the boost in long-term comp; it just said that it would be “tied directly, and solely, to future financial and shareholder returns.” The new package eliminates restricted stock that would have value upon vesting even if the publicly traded shares dropped. If the company fires Bewkes without cause before the contract ends, then it has to pay him his salary and bonus — the average of his two highest payments over the previous three years — for another two years. But Bewkes can’t compete with Time Warner, or help a competitor, for at least a year. There won’t be any severance payments if he or the company decides not to extend the contract beyond 2017.
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