NEW YORK — Cablevision Systems chairman Charles Dolan and his son, CEO James Dolan, each will receive a deferred bonus of $2.8 million for 2002, when the cabler was strapped for cash.
In addition, some 600 of the cabler’s execs will be paid a total of $37.7 million.
Move reflects Cablevision’s improved performance and comes as the Dolan family moves to take the cable side private and spin off Rainbow Media into a publicly traded company.
On Wednesday, Banc of America Securities told investors it doesn’t believe another bidder — such as Time Warner Cable — will emerge to vie for Cablevision’s cable systems.
“The Dolans have stated clearly, both by their words and, in our opinion, by their actions, that their stakes are not for sale,” Banc of America said.
In 2002, due to a liquidity crisis, Cablevision made staff cuts, sold assets and issued payment awards instead of cash bonuses.
The firm promised award recipients that after paying interest, taxes and capital expenses, payments would be made.
According to Cablevision’s compensation committee, the company achieved positive free cash flow in 2004, due to the operator’s lucrative phone, high-speed Internet and digital television services.
Cablevision shares were down 44¢ to close at $31.95 in trading Wednesday.