The agreement guarantees him an annual base salary of $1M, and a target annual incentive bonus of $2M. In contrast to his previous deal, from 2009 when AOL was still part of Time Warner, the new terms provide fewer benefits “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 company says in an SEC filing. But Armstrong’s stock options give him a chance to score big if AOL’s price rises: Half of the options vest when the 20-day average stock price rises at least 20% from the average in the 20-day period before he receives his grants. He can score the other half when AOL’s stock prices stays up at least 30%. He’ll also receive stock if AOL meets unspecified targets for its shares in the period from the beginning of this year to the end of 2014. One of AOL’s largest shareholders, Jeffrey Smith’s Starboard Value, has been hammering the company to take actions that might increase its market value. AOL shares are -3.5% over the last 12 months.
AOL Chief Tim Armstrong Inks 4-Year Contract With Perks To Boost Stock Price
What's Hot on Deadline
Bravo Unveils Unscripted Slate With 6 New & 18 Returning Series; More 'Real Housewives' & 'Vanderpump Rules'
M Night Shyamalan Unveils 'Glass': 'Unbreakable' & 'Split' Sequel To Star Bruce Willis, Samuel L Jackson, James McAvoy
Mindy Kaling & 3 Arts Option Alyssa Mastromonaco White House Memoir 'Who Thought This Was A Good Idea?' For TV
Latest Film News
- ‘Firestarter’: Stephen King Classic Reignites With Universal, Blumhouse & Akiva Goldsman Directing
- Tribeca Film Festival Winners: ‘Keep The Change’, ‘Bobbi Jene’ Tops
- Broad Green Pictures Hires Four Execs In Marketing & Legal Departments
- ‘Little Prince’s Mark Osborne & Scribe Adam Kline Link With Fox Animation For Two New Projects
- ‘3 Generations’: Weinstein Co. & MPAA Agree On PG-13 Rating, With GLAAD’s Backing & Some Cuts
- Famke Janssen Joins Cast Of Michael Caton-Jones’ Movie ‘Asher’