Friday, July 06, 2007
Nexstar execs will make killing if company sells
When Nexstar Broadcasting sells, two of its top executives stand to strike it rich, according to documents filed today with the Securities and Exchange Commission.
An addendum to CEO Perry Sook's employment contract says that if the company sells and he is out of a position, he will receive 200 percent of his base salary and 200 percent of his target bonus.
Based on SEC documents filed May 1, 2006, that would indicate Sook would receive $1.4 million in salary and another $700,000 in bonus for a total of $2.1 million.
The wording of executive vice president and chief operating officer Duane Lammers' contract addendum should concern employees at Nexstar stations in Joplin, Springfield, and across the U. S. His addendum is not related to his continued employment, but to the stock price when the Nexstar sale closes.
According to the addendum, Lammers is guaranteed a $100,000 bonus when the sale goes through. If the stock price is at $20 per share at that time, Lammers will receive an additional $100,000. For each additional two dollars, Lammers earns another $100,000, with the amount capped at $400,000 for a price of $26 or above.
While Nexstar's price is nowhere near the $20 mark presently, many times the word of an approaching sale will send the price soaring, and there are other methods that always seem to impress investors, most involving some kind of cuts or cost-saving ideas that invariably have an impact on the product offered by the companies and the jobs of those who work at those companies.
Nexstar Broadcasting owns KSNF in Joplin and KSFX in Springfield, and operates KODE in Joplin and KOLR in Springfield.