What would you do with $10.5 million? That is a question that you should direct to The New York Times Company (NYSE:NYT) (PINK:NYTAB) CEO Mark Thompson. The 55 year old CEO was hired this week, following the exit of former CEO, Janet Robinson.
Robinson’s departure was met with discomfort among a section of union workers, who were not settled with her exit package. The former CEO walked home with $23 million, in addition to other financial benefits.
As he moves into office, Thompson is looking at an opportunity to make as much as $10.5 million, inclusive of an annual salary of $1 million dollars.
The total $10.5 million stems from the potential $4.5 million from a signing bonus, $3million in long term incentives, and $2 million in annual incentives.
According to a filing by the company, $1.5 million of Thompson’s signing bonus is dependent on his performance between December 2012 and November 2015. This bonus, which will manifest as a stock award basis, could increase by up to 200 percent, depending on his achievements during the period.
Thompsons, who was formerly the director general at British Broadcasting Corp, makes an in on a 161 year old New York Times, that is currently reeling in the inevitable shift from print to Internet. The New York Times Company (NYSE:NYT) (PINK:NYTAB) expects Thompsons to bolster sales growth and facilitate the all important shift to the Internet. The company is worried about shrinking revenue and the next to nonstarter nature of its online advertising efforts.
Thompson had a reputable track record at BBC, and was instrumental in implementing major cost cutting strategies. Under his watch, BBC managed to cut a high number of jobs and also relocated some of its production activities outside the city of London. He has been a driving factor in the $1.6 billion plus costs cuts in BBC, since the outset of 2008.
Thompson, who received $976,000 as compensation for his last year at BBC, is expected to exude the same prowess at New York Times.
The 55 year old steps into an office that has been technically vacant since December- the month Robinson left. In the close to nine months of vacancy, Chairman Arthur Sulzberger Jr. has been the interim CEO.
In the meantime, the New York Times is still engaged in serious negotiations with a section of employees. These estimated 1,100 employees are from part of the bigger Newspaper Guild of New York. Apparently, employees at the Times have been reporting to work for more than one year without a contract.