As of October 22 the Entercom Board of Directors approved an Incentive Compensation Repayment Policy, better known as a Clawback Policy, for five of its executives.
This week five Entercom executives signed an agreement acknowledging the new policy.
Those five executives are:
CEO David Field, CFO Richard Schmaeling, COO Weezie Kramer, Chief Revenue Officer Robert Philips and General Counsel Andrew Sutor.
According to an SEC filing this week, the clawback policy specifically focuses on stock ownership. Field will be required to hold shares having a total value equal to at least 6x his base salary. The other four executives are required to hold shares having a total value equal to at least 2x their base salary.
What is a clawback? The clause became more common following the 2008 financial crisis. A clawback is a provision in an employees contract where money already paid to an employee might have to be returned to the employer. Many companies use clawback policies in employee contracts for incentive-based pay like bonuses. Clawbacks are considered an important part of the business model because they may restore the confidence and faith of investors and the public into a company.
