Jon Feltheimer‘s new contract runs to May 22, 2018 and guarantees the Lionsgate CEO $1.5M a year salary plus a performance bonus targeted to match, according to a company SEC filing this morning. The board also will make sure that he remains focused on boosting the stock price, which is up more than 127% over the last 12 months. If the bonus tops $1.5M, he can collect the extra amount in fully vested stock. He also will receive 200,000 restricted stock units and an option to buy 2M shares. On the first trading day of January 2014 he has an option to buy 250,000 shares at the day’s closing price — plus an option to buy 1M shares either at that price or $30 apiece, which ever is higher. There’s also complicated formula that governs what additional shares he can buy depending on the stock price. And, of course, Feltheimer would collect generous severance terms if there’s a change in control at Lionsgate that results in him losing his job.
“We believed in Jon’s early vision of how to best position Lionsgate to grow and adapt to a rapidly changing industry,” says board chairman Mark Rachesky. “He has successfully executed on a business plan which required discipline, patience and investment in all of the Company’s key business segments in order to create highly valuable content and long-term value for shareholders.”
Here’s the company’s release:
Santa Monica, CA, and Vancouver, BC, June 3, 2013 — Lionsgate (NYSE: LGF) Chief Executive Officer Jon Feltheimer has signed a new long-term agreement with the Company extending his tenure until May 2018, effective immediately, Lionsgate announced today.
During Mr. Feltheimer’s 13 years as CEO, he and Vice Chairman Michael Burns have guided the Company’s growth into a premier global entertainment company that has established a reputation for leadership not only in feature films and television shows but in creating and delivering content to digital platforms around the world.
Last year Lionsgate acquired Summit Entertainment, launched the global blockbuster HUNGER GAMES franchise and continued the growth and diversification of its television business, which encompasses 28 television series on 20 different networks including iconic and emerging brands such as MAD MEN, WEEDS, ANGER MANAGEMENT, NASHVILLE and ORANGE IS THE NEW BLACK. Lionsgate’s market capitalization has increased from $80 million to nearly $4 billion during Mr. Feltheimer’s tenure as CEO.
“We are pleased to make this early decision to extend Jon’s tenure as CEO until 2018, providing Lionsgate with extraordinary continuity as he and Michael Burns continue to grow the Company into a next generation global content leader,” said Lionsgate Chairman of the Board Dr. Mark Rachesky.
“We believed in Jon’s early vision of how to best position Lionsgate to grow and adapt to a rapidly changing industry. He has successfully executed on a business plan which required discipline, patience and investment in all of the Company’s key business segments in order to create highly valuable content and long-term value for shareholders.”
In addition to Mr. Feltheimer, Vice Chairman Michael Burns, Co-Chief Operating Officers Steve Beeks and Brian Goldsmith and General Counsel and Chief Strategic Officer Wayne Levin have all signed new long-term agreements with the Company during the past year.