According to a new SEC filing, three of Cumulus’ top executives earned a combined $8.8 million in 2017 with all three executives more than doubling their income in one year.
With over $2 billion in debt, Cumulus has been in Chapter 11 bankruptcy since late last year.
CEO Mary Berner saw her total income (salary and bonuses) jump from $2.53 million in 2016 to $5.25 million in 2017. Berner earned a $3.8 million bonus in 2017. In 2016, Berner earned a $1.08 million bonus. Berner’s base salary for both 2016 and 2017 was $1.45 million.
CFO John Abbot’s $2.25 million income included a salary of $750,000 and a $1.49 million bonus. In 2016, Abbot earned $987,653 from his salary and bonuses.
And, General Counsel Richard Denning earned $1.44 million in 2017, including a $550,000 salary and an $896,000 bonus. In 2016, Denning earned $692,841 from his salary and bonuses.
Once again proof that trickle down doesn’t work in our society of over compensation and greed. There are so many lowest rung employees still out on the street yet these execs know no limits for their need to pad their bank accounts.
“Trickle down” works in socialist countries where the state owns everything. All the profits are supposed to go to the state to pay for public services. In private business, there is no promise of trickle down unless you buy stock in the company. Everyone gets paid based on what they agree to. If you’re a lower rung employee, you get paid what you were promised. No more or no less. Employees have no personal risk in the success or failure of the company.
The rip off continued
FYI: She didn’t create the debt. All of her compensation was approved by the Board of Directors, and the main lenders all have seats on the Board. She didn’t just give herself this money. The money she makes is based on hitting certain revenue goals and other things set by the Board. If you study what she’s done in the last two years and compare it to previous management, it would make more sense.
In a perfect world, she would decline the bonus and put it towards the debt. There is no denying the fact that she is turning the company around. But. I think this would or could prove to all parties involved that mYbe she is the real deal. At said time when the company is out of debt and still profitable, which I think could happen, the pay the bonus. After all if you can’t live on 1.45 million, maybe she isn’t the right person for the job.
“In a perfect world, she would decline the bonus and put it towards the debt.”
It’s not like she has a stake in the company or will get one after bankruptcy. If it’s a mom & pop, and you have a stake, that makes sense. She was brought in to do a specific job by The Blackstone Group. She’s doing that job. She’s getting paid, and then she’ll leave after the company is stabilized. That’s what she does. She may never work again, or she may be hired to do a similar job somewhere else. This is not the kind of thing normal working people understand.
The ones that should be really upset are the vendors left holding an empty bag after they receive nothing from the bankruptcy settlement. Shame on our country’s policies and procedures for even allowing something like this to happen. It’s not the first time.
How does this even happen? And they will sit back and shake their heads and wonder aloud how they lost the total respect of their employees and talent …..
“Earned”
This is a very loose definition of the term.
I really hate to comment on other peoples compensation, after all, someone signed off on it. That being said how does a company pay this kind of money out to executives that are running a company who is 2 billion in debt. Does not matter it was in debt when they took over or reduced debt. No wonder employees get upset.
house of cards