Emmis Communications has entered into a new employment agreement with the only CEO the company has ever had, Jeff Smulyan. Smulyan’s base salary will continue to be $1,025,000 through February 28, 2019, and increase $25,000 each year. The new agreement runs through February 28, 2022, and will automatically renew for additional one-year terms. The company also paid Smulyan a $1 million signing bonus.
Smulyan’s annual incentive compensation target is 125% of his base salary and will be paid, if at all, based upon achievement of certain performance goals to be determined by Emmis’ compensation committee. The company also retains the right to pay any annual incentive compensation in cash or shares of its Class A common stock.
Each year the agreement remains in effect, Smulyan is also entitled to receive an option to acquire 37,500 shares of Class A common stock. Smulyan will continue to receive a $2,000 monthly automobile allowance and will continue to be reimbursed for up to $10,000 per year in premiums for life and disability insurance and retains the right to participate in all of our employee benefit plans for which he is otherwise eligible.