The extension comes early: His previous contract ran to October 30, 2017. It follows CEO Jon Feltheimer’s agreement last month to stay to May 2023. The execs have been a team since 2000.
Burns’ salary will remain $1 million a year, but with a performance bonus targeted at 75% of that amount — up from 50% in his previous contract.
He has an option to buy 950,000 shares at $19.01 per share — the closing price yesterday, before Lionsgate reported better-than-expected earnings. (The company closed today at $20.83, up 9.6%.)
In addition, he can buy 950,000 shares at $23.76. Each of the options vest in installments over the five years, beginning at the end of October 2017.
There’s a $4 million bonus he can collect if the company reaches a performance goal that the board’s Compensation Committee will set after the studio acquires Starz.
Burns will receive $187,500 worth of stock each quarter — based on the closing price at the end of the quarter — until November 3, 2017.
Lionsgate will provide life and disability insurance, a car allowance and “limited use of the Company’s private aircraft.”
If he’s fired without cause, or he leaves for a good reason, then he can receive a severance package of his base salary through the end of October 2022, and the quarterly share grants that end a year from now. His equity awards would also vest.
He’d receive the same package if he’s cut without cause or leaves within a year of a change in control — but with a guarantee that he’d receive at least $3.4 million.
Burns’ compensation package totaled $11.5 million for the fiscal year that ended in March, up 33% from 2015.