Time Warner Cable CEO in line for $79.9 million payout in Comcast deal
03/20/2014 7:46 PM
03/20/2014 7:48 PM
Time Warner Cable CEO Rob Marcus could receive “golden parachute” payments of $79.9 million as part of the cable company’s planned $45 billion sale to Comcast, according to a securities filing Thursday.
Marcus forged the Feb. 12 deal for Charlotte’s dominant cable provider but only replaced his predecessor, Glenn Britt, on Jan. 1.
Golden parachutes are payments that can be doled out to executives if they leave after a merger. Under the Dodd-Frank financial reform law, Time Warner shareholders will be able to vote on the payments, but the vote is nonbinding.
More than 15,000 other Time Warner Cable employees are also set to benefit from the deal, according to the filing.
These employees are eligible for a “supplemental bonus” that could be paid out “upon the completion of the merger or any termination of the merger agreement.” Under the merger agreement, the company can pay out a total of $100 million in these supplemental bonuses.
Time Warner Cable also said it made stock awards to more than 1,800 employees that are retention grants designed to keep workers from leaving.
In addition to Marcus, three other executives could receive big severance paydays: chief financial officer Arthur Minson Jr. ($27.1 million), chief technology and network operations officer Michael LaJoie ($16.3 million) and chief operating officer Philip Meeks ($11.7 million). All of Britt’s awards have already vested, according to the filing.
Stock options and restricted stock held by top executives can also fully vest if they leave the company. Marcus’ options and restricted stock could be worth an additional $82.8 million, according to the filing.
Both Comcast and Time Warner Cable shareholders are to hold special meetings to vote on the deal, but the dates have not been set. A regulatory review by the Justice Department and Federal Communications Commission is expected to take about a year.
New York-based Time Warner Cable has a major presence in the Charlotte market and the Carolinas. The company, which has a total of 51,600 employees, has about 2,500 of those workers at a corporate campus off Arrowood Road and at other locations. The Associated Press contributed.
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