His base salary will go from $900,000 in 2015 to $1 million this year and then $1.05 million on July 2, 2017, and $1.1 million a year later. He can also receive an annual discretionary incentive bonus targeted at 100% of his salary. He made $4.45 million last year.
Imax also promised to recommend that Foster be added to the board at “a date to be determined by the parties” and nominated for election next year.
Sweetening the new deal, he’ll receive $1.575 million worth of restricted share units, and stock options worth $1.05 million. On each of the following two anniversaries he’ll see an additional $787,500 in RSUs and $1.05 million in stock options — provided he’s still at Imax. The grants will vest in three equal installments beginning next year.
Imax also will match his salary in contributions to a retirement plan, with his interest vesting in 25% increments in 2019, 2022, 2025 and 2027 — or possibly all at once if he’s fired without cause or reassigned for “good reason.”
Foster joined Imax in 2001 from MGM/UA where he was EVP of Production. The large screen theater company credits him for helping to boost its box office results, overseeing its relationships with Hollywood studios, and promoting original content.