AOL CEO Tim Armstrong's Employment Contract Extended Through March 2016
UPDATED: "We are continuing to work on the comeback of AOL and have a plan that is beneficial for employees, customers and shareholders," the company said.
NEW YORK - AOL said Friday it has extended its employment agreement with chairman and CEO Tim Armstrong through March 28, 2016. His previous deal was set to expire April 7.
"The agreement was entered into and became effective as of March 29, 2012 and supersedes and replaces the prior employment agreement," the company said in a regulatory filing. "The Agreement provides for a continuation of Mr. Armstrong’s annual base salary of $1 million and target annual incentive bonus opportunity of 200 percent of his base salary."
The new deal conforms to the terms established by the company for all its executive officers. "As a result, the agreement provides fewer benefits to Mr. Armstrong compared to his prior agreement that was entered into prior to the company’s spin-off from Time Warner, including a reduction in the amount of cash severance benefits, the payment of cash severance benefits over time rather than in a lump sum and the elimination of supplemental life and disability insurance benefits," the online firm said in its filing.
He got $5 million in new options though, according to the document.
The company also said in a separate statement: "We are continuing to work on the comeback of AOL and have a plan that is beneficial for employees, customers and shareholders. We believe strongly that all of our brands are important to our brand portfolio. We will continue to update investors as we execute on our plan."