Google the EVC termination contract with Wilkerson file name: d341099dex101.htm
It is an incredibly detailed 10 page golden parachute. He got a sweet deal. Consulting fees through 2013, car allowance, health & life insurance, vesting.
Here are a few quotes from this golden parachute:
"Wilkinson will not be required to travel or maintain any specified level of hours in performing the Services"
"Wilkinson may provide the Services at Wilkinson’s home or other office space chosen by Wilkinson"
"Wilkinson will perform the Services only at such times, at such level of hours, at such Company offices or locations, with such Company personnel and on such matters that are mutually agreed upon from time to time by Wilkinson"
"Wilkinson’s employment with the Company is hereby terminated and shall be of no further force or effect"
With regard to options. It is clear why he is excercising them --They will expire soon:
"All outstanding stock options previously issued to Wilkinson shall continue to vest in accordance with the vesting provisions of such stock option agreement until the earlier of: (i) the date of expiration or termination of the Consulting Period, or (ii) the date of expiration or termination of this Agreement, at which time all outstanding stock options held by Wilkinson shall cease vesting, and, in accordance with the terms of each applicable Option Agreement, all unvested stock options held by Wilkinson as of such date of termination or expiration shall automatically be forfeited. In accordance with the terms of each applicable Option Agreement, Wilkinson shall have the right to exercise all vested stock options until the date that is ninety (90) days after the expiration or termination of the Consulting Period or this Agreement, as applicable, at which time each stock option shall automatically expire if not exercised prior to that date in accordance with the terms of the applicable Option Agreement and shall be of no further force or effect.
The end of his agreement will be a nice expense savings. The contract itself makes me angry.
At some point Wilkerson's selling won't matter. He is very a very angry person with a grudge. His moto was "Acquire acquire acquire!". That was once a reasonable strategy, but EVC already has the assets and scale it needs to show significant cash flow. Time to move on to a new strategy and they have.
Wilkerson's self-opinion is grandiose and his bulb is dim. On linked in he still claims to be Entravision's COO!That is an unabashed lie! I wonder what Jeffery Liberman (The real COO) thinks of that? I heard Jeff in a radio interview a couple years back during the recession. He is a very smart strategic thinker, quick on his feet. He is one of the main reasons I invested in EVC.
Anyone with half a brain would choose Jeff Liberman over Wilkerson. So why did they pay so much for Wilkerson to go away? EVC should have had the guts to terminate Wilkerson for performance issues!
When management gives someone a golden parachute, the question is why? In most cases, it is part of a clubby atmosphere wherein management does for one and the next bunch of top executives do for the next, ad infinitum. It is an unwritten deal whereby management, who think they, and not the shareholders, own the company, keep their own nests feathered. This is not unique to EVC.