October 24, 2009 By Alfred Branch Jr.
Both Michael Rapino, president and CEO of Live Nation, and his Ticketmaster counterpart Irving Azoff are poised to each make a base salary of $2 million through the spring of 2014 should the merger of their two companies come to fruition.
According to documents filed with the Securities and Exchange Commission this week, Rapino will retain his title if the two companies merge under the new banner of “Live Nation Entertainment,” but his employment contract appears to be more lucrative than Azoff’s, reflective of Live Nation’s elevated stature in the deal.
“Under the Post-Closing Rapino Agreement, Mr. Rapino will receive an annual base salary of $2,000,000, subject to minimum increases of $100,000 per year,” the document states.
“Following transition from bonus commitments under the Existing Rapino Agreement, Mr. Rapino will be eligible to receive (a) an annual cash performance bonus with a target amount equal to 100% of his highest base salary paid during the calendar year in which the bonus was earned, (b) an annual cash exceptional performance bonus with a target amount equal to an additional 100% of his highest base salary paid during the calendar year in which the bonus was earned (each subject to increase or decrease based on actual performance, determined by reference to the achievement of performance targets established by the Compensation Committee of the Board (the “Compensation Committee”)) and (c) annual grants of 150,000 shares of restricted Live Nation common stock, vesting upon the attainment of specified financial and individual performance criteria set by the Compensation Committee in equal installments on March 31st of the first two calendar years following the applicable date of grant, subject to Mr. Rapino’s continued employment with Live Nation.”
In addition, Rapino will receive a $3 million payment upon completion of the merger, and 350,000 shares of company stock each year for four years.
Upon his termination by the company, or his decision to leave, Rapino will also receive a lump-sum cash payment that will at least equal is base salary plus bonuses multiplied at least three times.
(The image accompanying this story is from Boston.com)