Time Warner Cable CEO may get $80M exit package
Execs may get payout under planned merger
Outgoing CEOs typically must spend years in the corner office to collect a large golden parachute. Time Warner Cable’s Robert Marcus, on the job for less than one fiscal quarter, could soon pocket nearly $80 million.
Under terms of the proposed $45 billion merger with cable giant Comcast, Marcus would receive $79.9 million, including severance pay and the value of his stock options and restricted shares. Some of Marcus’ restricted shares weren’t scheduled to vest until 2020, but like his stock options, will be cashed out following completion of the merger, which is expected to be completed by year’s end.
Marcus, 48, and other executives are also eligible for a supplemental bonus approved by Time Warner Cable directors Feb. 12, the day the merger deal was announced. That’s worth up to $2.5 million, payable in early 2015. Directors said the bonus “was intended to enhance employee retention during the pendency of the merger, while preserving incentives designed to keep employees focused on executing ” operational plans.
Marcus will also get close to $400,000 in perks and benefits, including three years of health insurance, supplemental life insurance and financial planning advice.
Marcus was Time Warner Cable’s chief operating officer from December 2010 until Jan. 1, when he replaced retiring CEO Glenn Britt. His 2013 compensation has not yet been disclosed, but in 2012, he received nearly $10 million in compensation and gained nearly $20 million from vested shares and exercising stock options.
Among other Time Warner Cable executives, CFO Arthur Minson, hired in May 2013, will get a golden parachute valued at $27 million. Senior vice president Michael LaJoie, who joined the cable company’s parent in 1996, is due to receive $16.3 million.
Details of the payouts were disclosed deep in a 365-page Securities & Exchange Commission filing Thursday.
Time Warner Cable’s board is recommending shareholders approve the golden parachute proposal, although the vote is non-binding.