Michael Burns employment contract for next 5 years
8-k filed today....I like the part that ties his performance to stock price......looks like there will be incentive for executives to get price to sit at $23.......sounds good to me. This is an excerpt from the 8-k:
In addition, Mr. Burns will be entitled to receive
a stock price bonus of $700,000 if the volume-weighted average of the Company's stock price exceeds $17.00, $20.00 or $23.00 for a period of six
consecutive months (for a maximum total bonus of $2,100,000 if all three stock price values are met).
with the stock price at 27.59.....if it stays above $23, Michael Burns earned his bonus of $2.1million (see this thread for detail)........WOW...that did not take long. I get a feeling that a buyout is around the corner IMO..
Why in the world would a Burns contract be done now 11/1 if a blowout q is not coming this Thur 11/8? I mean with well over a mil options given to him at $16.08 strike why would the number two LGF guy wait until earnings are reported. I would think that he got that deal done on purpouse because they think the stock is heading higher right away. Also notice that no one in this company has sold any shares for a long long time even as the stock hit new highs.
Thanks wanna! I was curious about the target price on the stock options. I don't quite agree with the $17 bonus for Mr. Burns. Seems a bit low. I would have set the prices at $20, $23 & $26, but that's just me.
5. Stock Price Bonus. If, during the Term, the Average Stock Price of Lions Gate's common shares during a period of six (6) consecutive months is not less than US$17.00 per share, then Lions Gate shall pay Burns a one-time bonus (in addition to any other compensation payable pursuant to this Agreement) in the amount of US$700,000 (the “Stock Price Bonus”). In addition, if during the Term the Average Stock Price of Lions Gate's common shares during a period of six (6) consecutive months is not less than US$20.00 per share, then Lions Gate shall pay Burns a one-time additional Stock Price Bonus of US$700,000. In addition, if during the Term the Average Stock Price of Lions Gate's common shares during a period of six (6) consecutive months is not less than US$23.00 per share, then Lions Gate shall pay Burns a one-time additional Stock Price Bonus of US$700,000. The stock price targets set forth above in this paragraph shall be subject to reasonable adjustments by the Compensation Committee for stock splits, stock dividends and similar events affecting the per-share value of Lions Gate common shares. For purposes of the Stock Price Bonus, the “Average Stock Price” for a particular period will be the volume-weighted average of the Daily Stock Prices for each trading day during such period, and the “Daily Stock Price” for any particular trading day will be the average of the high and low trading prices for a Lions Gate common share on such day.
The Compensation Committee shall determine whether a stock price target has been achieved for purposes of the Stock Price Bonus (the date of such determination, the “Stock Price Bonus Determination Date”). Any Stock Price Bonus, if earned, will be paid in the form of an option to acquire Lions Gate common shares, an award of Lions Gate common shares, or a combination thereof as determined by the Compensation Committee in its sole discretion (with the number of shares subject to any such option or award to be determined in the same manner as described in Section 4(d) above for Discretionary Bonuses payable in the form of equity awards). Any such option or shares awarded to Burns pursuant to this Section 5 shall be fully vested on
the Stock Price Bonus Determination Date, and the per share exercise price of any such option shall be equal to the closing price of a Lions Gate common share on the Stock Price Bonus Determination Date. Any such option shall be evidenced by and subject to the terms of an option agreement in the form generally then used by Lions Gate to evidence grants of stock options under Lions Gate's stock incentive plan as then in effect (such form to be modified as appropriate to reflect that the option will be fully vested on the Stock Price Bonus Determination Date). Any Stock Price Bonus payable in the form of Lions Gate common shares shall be paid within five (5) business days after the Stock Price Bonus Determination Date.
For the avoidance of doubt, Burns shall not be entitled to receive the Stock Price Bonus at any specified target more than one time and the maximum aggregate bonus that could be payable to Burns in respect of the Stock Price Bonus opportunity under any scenario pursuant to this Section 5 (and any other provision of this Agreement applicable to the Stock Price Bonuses) is US$2,100,000 (or the value thereof in the form of Lions Gate options and/or common shares as provided herein); provided further that a single rise in stock price can trigger all three Stock Price Bonuses.