Time Warner Cable CEO to get $80 million golden parachute
By Chris Isidore @CNNMoneyMarch 21, 2014: 9:31 AM ET
NEW YORK (CNNMoney)
Time Warner Cable CEO Robert Marcus stands to get a $80 million golden parachute for negotiating the sale of the company to rival Comcast.
In a filing about the deal Thursday, Comcast disclosed the estimated value of the Time Warner Cable parachutes for its top officers.
Marcus's annual compensation package under the contract he signed last year would have been $6.5 million in salary and cash bonus, and $9.5 million in stock grants. So the $79.9 million package comes out to nearly five year's worth of minimum compensation. But about half of the value of that parachute is due to the immediate vesting of restricted stock and options he had received in the past when he held other positions with the company. He became CEO on Jan. 1 after serving as its president.
Arthur Minson, chief financial officer, will get a $27.1 million parachute, while Michael LaJoie, the chief technology officer, gets $16.3 million, while Philip Meeks, the chief operating officer, gets. $11.7 million.
Executive employment contracts typically contain golden parachutes which promise big payout if there is a "change in control" of the company.
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The idea is that shareholders do not want executives to block a possible deal that would be good for shareholders due to concerns about how it will affect them personally. The company also does not want top executives or leave the company while merger negotiations are underway.
But the size of some recent parachutes has raised questions.