Corporate just disclosed that it awarded newly named Chief Digital Officer David Payne two sizable stock awards substantially the same as those given to Maryam Banikarim, the new chief marketing officer. This week, both executives were made senior vice presidents and added to the Gannett Management Committee, the 13-member group that runs GCI's overall operations.
Payne got 25,000 shares of so-called restricted stock -- RSUs, for short. And he got 50,000 stock options, according to this filing today with the U.S. Securities and Exchange Commission.
But Payne's options carry a lower "strike price" compared to Banikarim's. That's the maximum the executives must pay the company for their 50,000 shares, no matter how much more they're worth on the open market.
Payne's options have a $14.87 strike price -- Gannett's closing price the day his appointment was announced. In contrast, Banikarim's are at $15.41 a share, the closing price Monday, when her appointment was announced, this SEC filing says.
Oh, what a difference two days make! The 54-cent spread makes his 50,000 options $27,000 cheaper.
GCI closed this afternoon at $15.24, rising 1.5% in a market that was up overall.
What are RSUs?
They give recipients the right to receive shares at a later date, a form of deferred compensation meant to both encourage executives to stay at a company while also working to boost a stock's market price.
Like Banikarim, Payne can claim his shares Dec. 10, 2014. How much are they worth? If, for example, GCI is trading that December date for the same price as today's close -- $15.24 -- his 25,000 shares would be worth $381,000.