Charter to give execs restructuring bonusesSt. Louis Business Journal - by Kelsey Volkmann
Charter Communications Inc. recently adopted a new $23 million bonus plan to reward executives for staying on through and beyond a successful restructuring under the Chapter 11 bankruptcy it plans to file in two weeks.
One part of the plan provides incentives to executives to stay on through the cable giant’s emergence from restructuring, according to a filing Wednesday with the U.S. Securities and Exchange Commission.
Under this first part, Chief Executive Neil Smit will receive $6 million; Chief Operating Officer Michael Lovett, $2.38 million; Chief Financial Officer Eloise Schmitz, $765,000; and Corporate Secretary Grier Raclin, $765,000.
The second part of the plan provides annual incentives for participants to achieve individual to-be-determined performance goals during each of the three years following the company’s emergence from the proceeding.
Under this second part, Smit can earn up to $2.5 million a year; Lovett , $910,000; Schmitz, $664,000; and Raclin, $597,000.
This new bonus plan replaces an earlier “restructuring value bonus plan” adopted in January.
Charter, which is controlled by Microsoft co-founder Paul Allen, reached an agreement with creditors to reduce its $21.7 billion debt load by $8 billion.
St. Louis-based Charter Communications Inc. (Nasdaq: CHTR), the nation’s third-largest cable television provider, plans to file for Chapter 11 bankruptcy by April 1.
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