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.
Yeah, as an investor what really impresses me in a company is instability of leadership and product degradation.
ReplyDeleteIf a manger is making responsible cuts or cost saving changes then that is good for investors and attracts more investors. On the other hand, if a manger is just being greedy and cannibalizing a company to line his pockets, then that does not attract investors (because they are investing in the future of the company not the manger).
You know Randy capitalism outlasted communism for a reason . . . it works.
If they make a "killing" then they are just doing what a good many very smart people have done. We have new millionaries made all the time because they started up a new company and sold it or took over a company, made it grow and then sold it for a nice profit.
ReplyDeleteThat's the way of the real world these days and I don't blame anyone for cashing in on this very successful way to make money.