New Deal Could Net Time Warner's Jeff Bewkes $30 Million in Stock Bonuses Over Five Years
UPDATED: Regulatory filing shows no salary increase for the next five years - but $6 million per year if the company thrives.
Jeffrey Bewkes won’t be getting a raise in his base salary for the next five years, but he could earn an additional $30 million in stock bonuses during that time frame under the terms of his new deal, disclosed in a regulatory filing Monday.
Bewkes’ former contract was set to expire Dec. 31, but he recently signed on as chairman and CEO of Time Warner for another five years, until Dec. 31, 2017, and he’ll qualify for $6 million in additional bonuses each of those five extra years, assuming the company thrives under his leadership.
“Bewkes’ base salary and the target amount of his annual discretionary cash bonus have not increased and remain $2 million and $10 million, respectively,” according to Monday’s regulatory filing. “The target value of annual long-term incentive compensation will increase from $10 million to $16 million beginning in 2013.”
The new deal is tied much more to stock performance than was the last deal, so $1.8 million in stock up front each year goes away. The result could be a raise of about 3 percent annually for the next five years.
"The Compensation Committee has approved a long-term incentive structure consisting of a mix of stock options and performance stock units, the value of which are tied directly and solely to the company's future financial performance and shareholder returns, and that does not include time-vested restricted stock units," according to the filing. "As a result, the structure of Mr. Bewkes' compensation is significantly weighted to long-term incentive compensation that is dependent on the long-term financial success of the company."