Home » Consumer News »Time Warner Cable » Currently Reading:

Incoming Time Warner Cable CEO Gets $50+ Million Bonus if Company Sold

Phillip Dampier December 3, 2013 Consumer News, Time Warner Cable 1 Comment

Money-Stuffed-Into-PocketThe incoming CEO of Time Warner Cable will walk away with more than $50 million just for getting out-of-the-way of a sale or breakup of the company.

Robert Marcus is scheduled to take over the CEO role Jan. 1 after Glenn Britt retires. But there is a good chance Marcus won’t have a cable company to run if executives decide to accept anticipated takeover offers due within weeks that could turn ownership of Time Warner over to Charter Communications or split up subscribers among several potential buyers including Comcast, Cox, and Charter.

Reuters reports Marcus will earn the most if he can hold off buyers for the next four weeks until he becomes CEO. Under his employment contract, Marcus would then qualify for a generous goodbye package:

  • A compensation bonus amounting to three times his base salary of $1.5 million;
  • A departure award amounting to three times his usual $5 million annual bonus;
  • Permission to cash out the large amount of stock he has earned as part of his compensation, now valued at $37 million.

In total, Marcus could earn $56.5 million for just one day of work — long enough to shake the hands of the new buyer(s) and head for the elevators for the last time. If the company sells before Dec. 31, Marcus will still land on his feet, earning a severance package valued at $47.5 million.

In a separate move, Time Warner Cable executive vice president Peter Stern dumped 4,253 shares of his company’s stock at $130 a share, taking $552,890 in compensation.

While top managers are routinely offered generous departure packages more commonly known as “golden parachutes,” thousands of lower-level Time Warner Cable employees will likely face the ax within months of any sale, predicted one analyst. In similarly sized mergers and buyouts, the largest job losses will impact call center workers and middle management. Other employees will likely leave if asked to move to regional operations centers in other cities where the buyer(s) operate. At least one analyst said it was unusual for Time Warner Cable to proceed with a CEO switch while the company is in play.

Marcus understands how the business of mergers and acquisitions work; he started his career as an attorney specializing in the practice.

Search This Site:

Contributions:

Recent Comments:

  • Dave Hancock: BUT: Those in favor of this are ALL REPUBLICANS!!...
  • T.J.: So I have one thing only to say about this is that this isn't all Republicans vs democrats, it is a small group, there many Republicans opposing this ...
  • Dave Hancock: This could (and should be) a SIGNIFICANT ELECTION ISSUE. A direct attack on consumers via unregulated internet rates! My note already in to my "re...
  • Web Stuff: I live in a CenturyLink service area and my dealings with them lead me to believe that they are not really interested in having customers... They onl...
  • shelley Haitko: 2/9/16 Decades changed their format recently , Will classic shows be seen on weekends? Comcast New Haven, Ct. 06515 won,t let me have you guys. Shelle...
  • Telephone Man: Okay I am in no way sticking up for this practice however I am going to explain something to all that do not know how this little game works. Let m...
  • BobInIllinois: Comcast owns 49% of Midco, per Wikipedia https://en.wikipedia.org/wiki/Midco...
  • Tony: Data caps have been updated. Better, but still annoying. Web Surfer - 200GB G5 - 450GB G10 - 550GB G15 - 700GB Dream 60 - 800GB Dream 100 - 10...
  • Michael Elling: Net neutrality is an unsupportable contrivance. It was coined by someone (Tim Wu) who loved the results of "equal access" but didn't want to put up w...
  • Froggy2011: cable will go bankrupt except for big companies using them. eventually even them leaving them. why because eventually the free movie and show market w...
  • me: I cut in 2009. At first I tried to keep up. But then I realized it did not really mater anymore. *I* *AM* *FREE*!!!! The first year or so was toug...
  • Jonny: My smaller cable company Suddenlink (1.4M customers) started the same thing. 250GB cap with with their medium speed of 50mbps. They are only doing thi...

Your Account: