Gannett awarded just-named USA Today publisher Larry Kramer 37,341 restricted shares of company stock, apparently as a signing bonus, a new regulatory filing today shows.
Kramer can claim the shares Dec. 31, 2015, according to the filing with the U.S. Securities and Exchange Commission. At today's $13.37 closing price, the shares are worth about $499,000. Their ultimate value will depend on the stock's market price more than three years from now, however.
Restricted shares are typically awarded on the condition that the recipient is still an employee on the exercise date. There may be other conditions, such as meeting certain financial goals. Today's filing doesn't provide details, including a reason for the award.
But it's typical for senior executives to get one-time bonuses and other incentives in return for agreeing to join a company. For example, Chief Financial Officer Paul Saleh quit GCI yesterday for the CFO's job at much-larger Computer Sciences Corp., and received 35,000 CSC restricted shares as a signing bonus. They're potentially worth $945,000, public documents show.
Kramer, 62, was named USAT's publisher yesterday. He replaced Dave Hunke, 59, who had been publisher from April 2009 until he was named chairman last month with a scheduled retirement date of September.
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Restricted shares are typically awarded on the condition that the recipient is still an employee on the exercise date. There may be other conditions, such as meeting certain financial goals. Today's filing doesn't provide details, including a reason for the award.
But it's typical for senior executives to get one-time bonuses and other incentives in return for agreeing to join a company. For example, Chief Financial Officer Paul Saleh quit GCI yesterday for the CFO's job at much-larger Computer Sciences Corp., and received 35,000 CSC restricted shares as a signing bonus. They're potentially worth $945,000, public documents show.
Kramer, 62, was named USAT's publisher yesterday. He replaced Dave Hunke, 59, who had been publisher from April 2009 until he was named chairman last month with a scheduled retirement date of September.
Jim: And what happens to the dividends the stock pays between now and when the recipient can rightly claim the shares? Are they escrowed? Or are they paid to the potential recipient as if he already owned the stock? The numbers here are not insignificant:
ReplyDelete37,341 shares X 0.80 annual divvy = $29,872.80 X three years = $89,618.40.
Dividends do not accrue. They are not back- dated. They pay going forward when he takes ownership in the future. Current dividends will not positively impact of the value he receives.
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