Thursday, March 1, 2018

iHeartMedia Okays Bonus For Three

Bob Pitman
Being just days away from perhaps declaring bankruptcy, iHeartMedia has decided now is the time to pay three top leaders..a bonus.

According to an SEC filing, iHM has 'accelerated' payments for CEO Bob Pitman, President/COO/CFO Richard Bressley andVP/General Counsel/Secretary Robert Wells.

The company states its compensation committee moved up Pittman’s previously earned bonus payments from 2016 totaling $500,000 and 2017 worth $500,000 under the company’s Supplemental Incentive Plan (SIP).  It also approved a $2.325 million bonus Pittman is eligible to receive for each quarter of 2018.

Richard Bressler
But approval for making the Q1 2018 bonus payment to Pittman comes with a caveat that he would have to repay the after-tax value of the bonus if he was terminated for “cause” or voluntarily resigned without “good reason” before March 31, 2019.

Bressler’s 2016 and 2017 SIP bonus payments have also been moved up, under the same terms. And like Pittman, he’s eligible for a new quarterly bonus in 2018. In Bressler’s case that’s $1.325 million with the first quarter payout already approved.

Robert Walls
In addition, executive VP/general counsel/secretary Robert Walls is eligible for quarterly bonuses of $225,000 in 2018.

iHM has been attempting to restructure over $20 billion in debt. On February 1 the company decided to skip a $106 million interest payment that was due today on its 2021 outstanding Senior Notes. That set off a 30-day grace period to make the interest payment before an event of default is triggered. That 30 days is about to end and some analysts are predicting the company may file for Chapter 11.
The iHM board adopted a new incentive package for 2018, but it did not offer any of the three executives’ retention bonuses as it did last January. A year ago Pittman and Bressler were each given $1.75 million and Walls was paid $500,000 for their continued work at the company.

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