Clear Channel Gives Hogan Millions in Walk Away Money
So what will the former CEO be doing now that he's out of work? Probably counting some of his money. And some of these numbers will seem mind boggling to the average radio employee, many of whom have lost their jobs with this company. In the "separation" agreement, as long as Hogan does not violate the agreement, Clear Channel will be handing over quite a bit of cash to break off this marriage. Clear Channel will pay the former CEO $900,000 for performance in 2012, an annual bonus of $77,250 for performance during 2013, and a prorated annual bonus for the days he was employed during 2014, the vesting of 93,076 restricted shares of Class A Common Stock granted to Hogan on October 22, 2012 will be accelerated and CCMH will repurchase 83,938 of those shares. But wait, there's more. Much more. Healthcare, a secretary money for rent and legal fees.
Clear Channel also agrees to pay Hogan $333,000, which is the remaining amount earned by Hogan pursuant to a supplemental incentive plan with respect to 2011 performance, an “equity value preservation payment” equal to $1,027,355, paid in a lump sum payment, a lump sum severance payment equal to $1,538,000 minus the repurchase amount, a severance payment equal to $3,297,000, paid over 36 months and a payment of $1,000,000, paid over 12 months, beginning on the first anniversary of the date of separation.
Hogan will also receive healthcare coverage for 36 months, secretarial services for 6 months, $20,000 in outplacement services, a housing allowance of $25,000 per month for up to 9 months and up to $25,000 for Mr. Hogan’s reasonable legal fees incurred in connection with the negotiation of the Separation Agreement.
Read the entire 8K HERE
A little over six months after Clear Channel gave Hogan a $125,000 raise, his boxes were packed. Back in June it was announced Hogan would be moving from San Antonio to New York City to be closer to the office in which Clear Channel CEO Bob Pittman worked. His raise elevated his salary to $1.125 million per year. He also received a housing allowance and moving expenses.
In reporting this story yesterday, MediaPost included the details of Clear Channel's financial situation, including having to service $18 billion in debt. "In December, 2013, Clear Channel revealed plans to push back scheduled repayments in exchange for higher interest rates. The company's interest expense increased 7 percent from $1.15 billion in the first nine months of 2012 to $1.23 billion in the first nine months of 2013. The company posted a net loss of $297.7 million in the first nine months of 2013 -- up from a $233.2 million loss in the same period of 2012."
(1/15/2014 10:04:23 AM) |
Hogan was a complete stuttering fool who did absolutely nothing for CC. He was a short-sighted bully that ran off all of the good, competent employees. If someone got too good, Hogan axed them because he felt threatened. This move was long overdue. Unfortunately, Pittman is just as bad. He is even a bigger buffoon than Hogan. CC continues to flail and lose billions. And Pittman gets promoted. They need to can him too. These two have ruined this company. The proof is in their performance.
(1/14/2014 5:33:28 PM) |
Oh Poor baby. They gave me a whole 6 K when they screwed me back in 2008.
I don't feel a bit sorry for him or the company they screw the people that work for them all time.
(1/14/2014 12:40:36 PM) |
Note to Average Radio Guy: One gets involved at a level in an organization where, not the priority but the only PURPOSE is personal wealth accumulation - at the cost of anybody/everybody else.
Ethics, morals, benefits to shareholders, audiences, advertisers or employees are of the lowest concern.
These positions are open only to sociopaths - and there are plenty to go around.
|- Ronald T.|
(1/14/2014 12:20:42 PM) |
I estimate that before the Airplane Car and driver Pittman will receive about 4,800,000 a year. God only knows what his compensation will be when he leaves.
The private plane and driver for both business and personal reasons sends a very bad message across the company as of to what kind of person you are.
For years Bill Gates flew coach on United.
As for Hogan it looks like he will receive about 7.6 million to leave.
Not bad for running a company into the ground.
(1/14/2014 11:36:11 AM) |
"$900,000 for performance in 2012, an annual bonus of $77,250 for performance during 2013, and a prorated annual bonus for the days he was employed during 2014"
How does one get a performance bonus for a company that is drowning in debt.
|- Average Radio Guy|
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