Total pay down for Time Warner CEO
Dick Parsons, target of Icahn attacks, had bonus trimmed but saw total compensation stay above $16 million.
NEW YORK (CNNMoney.com) - Time Warner Chairman and CEO Richard Parsons, who was under fire much of the last year from investor Carl Icahn, saw his total compensation decline slightly to $16 million in 2005.
Parson's base salary in 2005 was $1.5 million, unchanged from the previous two years, according to the company's filing with the Securities and Exchange Commission late Tuesday. His bonus was $7.5 million, down from the $8 million he received that way in 2004 and 2003.
But an increase in the number and value of restricted stock and stock options granted Parsons limited the decline in Parson's total compensation, which was at $16.2 million for 2004.
Parsons received 650,000 shares of restricted stock and another 650,000 stock options granted in 2005, up from 500,000 restricted shares and 500,000 options he received a year earlier.
The stock grant was valued at $3.2 billion in 2005, down from $3.4 billion for the fewer number of shares a year earlier, as Time Warner (Research) shares fell 10.3 percent during the course of the year. The options, which he can exercise at $17.97, were valued at $3.3 million, up from an estimated value of just under $3 million for his previous year's options, which can be exercised at $17.28 a share.
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Parsons was the focus of much of the criticism leveled at the company by Icahn, who argued the company's stock price was not performing as well as it should, and pushed for the break up of the world's largest media conglomerate. Icahn tried to launch a proxy fight for control of the Time Warner board, but found limited support among other shareholders.
Still in February Icahn and Time Warner reached an agreement in which the company agreed to increase its share repurchase plans up to $20 billion from its previously announced plans to buy $12.5 billion in its own shares. The company also agreed to add two new independent directors to its board and will consult with major shareholders, including Icahn, during this process.
While Icahn was pushing for control of Time Warner he identified veteran media executive Frank Biondi as his choice to be CEO of Time Warner, but Biondi said he hoped to only have the job for a limited period of time. And Biondi identified Jeffrey Bewkes, Time Warner's president and chief operating officer, as the person he would like to see eventually be CEO.
Bewkes also saw his pay and compensation trimmed to $12.5 million from $12.8 million in 2004.
His base pay remained at $1 million, while his bonus was cut to $6 million from $6.5 million in 2004 and 2003.
But he received a grant of 525,000 shares of restricted stock as well as 525,000 stock options. Both are up from 425,000 in 2004. The value of his stock grants rose to $2.7 million from $2.6 million a year earlier, as did the value of his options.
For a look at Time Warner's truce with Icahn,click here.