UPDATE, 3:00 PM: Here are some of the key details of the exit agreement for Time Warner Cable’s departing CFO Arthur Minson that were left out of the press release, but were just noted in an SEC filing. The company will pay him $5 million in return for a “release of claims in favor of the Company and affiliated parties.” He has agreed to advise TWC as it seeks to complete its sale to Charter Communications. If the deal closes before January 1, then Minson will collect another $5 million. If it’s delayed, then he loses the second payment. With the agreement he will receive “no further compensation as an employee” and forfeits “all of his outstanding unvested Company equity awards.”
Minson’s unvested awards were worth $14 million at the end of 2014, based on the $152.06 December 31 closing price for the stock, according to the TWC proxy. At today’s closing price of $180.28, they’d be worth $16.7 million.
PREVIOUS, 8:40 AM: Is this a sign of confidence that Charter Communications will prevail in its effort to buy the No. 2 cable company? Perhaps. Arthur Minson joined Time Warner Cable in 2003, and left to become CFO of AOL in 2009 when Time Warner spun it off — later becoming COO. He rejoined TWC as CFO in May 2013. That made him a central player in the company’s deals with Comcast, Charter and others. He has also held senior finance positions at AMC Networks (formerly Rainbow Media Holdings) and Time Warner.
He’ll become president and COO of WeWork, a privately held company that rents office space and services — mostly to independent and start-up firms. But Minson has also agreed to be an advisor to TWC until the deal with Charter closes.
Minson will be replaced for now by chief accounting officer William Osbourn, Jr. and treasurer Matthew Siegel. They’ll hold on to those titles while serving as co-CFOs.
CEO Rob Marcus calls Minson “the finest CFO in America…I’m grateful that Artie delayed his decision to leave until he was confident that Time Warner Cable’s path forward was established, and in particular for his role in crafting our merger agreement with Charter.”
Last year Minson made $13 million, a 137% increase vs 2013. The deal to bring him back to TWC included stock and other awards to compensate for amounts he forfeited by leaving AOL. His contract at the cable company was to last to May 2016 and includes “non-solicitation, non-compete and non-disparagement covenants,” according to the TWC proxy.
If Comcast had succeeded in its effort to buy TWC, then Minson could have made $27 million from a golden parachute. Charter has not yet filed similar terms for the deal it announced last week.
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