According to The Atlanta Business Chronicle, Cumulus reported Wednesday that it paid John Abbot, executive vice president, treasurer and chief financial officer, $421,875; and Richard Denning, senior vice president, secretary and general counsel, $165,000. The company said the cash awards "were made in recognition of, among other things, the exceptional efforts and contributions made by those executive officers during 2016, both individually and as members of the management leadership team, in the initial phase of the company’s operational turnaround plan and ongoing operational and financial restructuring."
The payments are in lieu of any award the execs might have been entitled under the company’s annual incentive plan for 2016, Cumulus said.
Atlanta-based Cumulus -- the nation’s second largest radio network with 447 owned-and-operated radio stations -- in October passed the one-year mark for new CEO Mary Berner, as well as her efforts to turn around the company. Cumulus lost $546 million in 2015. For the nine months ended Sept. 30 it reported net income of $33 million and adjusted earnings before interest, tax, depreciation and amortization of $149 million, down 24 percent from the nine months ended September 2015.
On Dec. 12, Cumulus proposed a refinancing intended to reduce Cumulus' debt -- which is $2.4 billion -- by up to $305 million. That proposal led Cumulus to sue J.P. Morgan Chase for allegedly trying to block the refinancing, which would retire some senior notes at a discount of up to 50 cents on the dollar.
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