Warner Bros. Discovery has tweaked its CEO’s employment contract, granting an even bigger pot of restricted inventory models however linking them to free money move targets.
In an SEC submitting at this time, WBD mentioned additionally it is setting apart one other $27 million price of PRSUs for high executives and different workers.
Free money move, the quantity an organization generates after accounting for all capital expenditures, is a key metric, permitting corporations to pay down debt. That’s a serious focus for WBD, whose debt stood at almost $50 million at 12 months finish.
Zaslav has continuously been among the many highest paid CEOS in media, and throughout all sectors. His whole compensation final 12 months got here to $276 million, inflated by a $202 million inventory choice grant when his contract was prolonged forward of the Discovery-Warner Media merger. The choices do require the inventory to hit sure metrics staggered over seven years earlier than they’re within the cash.
Government pay is difficult. Zaslav’s annual grants have been (and the improved grant nonetheless will likely be) primarily based 75% on so-called “qualitative” efficiency measures, that are much less particular and extra subjective, and 25% on “quantitative” standards, or numbers, which is able to now imply free money move. The brand new further grant flips that and will likely be 75% quantitative — on this case free money move — primarily based.
The executives eligible for preliminary, particular PRSU grants price a mixed $9.5 million this 12 months embrace: chief income and technique officer Bruce Campbell; CFO Gunnar Widenfels; CEO of world streaming and video games, JB Perette; President, Worldwide Gerhard Zeiler; chief folks and tradition officer Adria Alpert Romm; and Savalle Sims, EVP and common counsel.
“The modifications to the Warner Bros. Discovery govt compensation program are designed to additional incentivize Firm workers, together with members of its management crew and others whose efforts are vital to reaching the important thing near-term monetary aims of elevated free money move and lowered leverage,” mentioned WBD board chairman Samuel A. Di Piazza, Jr. “The WBD Board is assured that these further incentives supply a extra aggressive package deal in opposition to the backdrop of ongoing industry-wide transformation and financial headwinds, and higher place the corporate to advance core drivers of shareholder worth.”
The variety of Zaslav’s annual PRSUs in addition to the extra PRSUs for the 2023 awards will likely be decided primarily based on WBD’s closing inventory worth on February 28 of $15.62.
MORE
