Lionsgate co-chairman and CEO Jon Feltheimer will extend his contract for four years starting in April with an annual base salary of $1.2 million, the company said in an amended employment agreement filed with the SEC.
Vice chairman Michael Burns is also extending his contract by four years.
Separately, the company received a bit of a boost in its proxy battle with Image Entertainment. An influential shareholder advisory service recommended that Image shareholders vote for one of Lionsgate’s alternate nominees to Image’s board.
Institutional Shareholders Services late Wednesday urged Image stockholders to elect Lionsgate nominee Duke Bristow. Lionsgate has proposed a slate of six nominees who would effectively replace Image’s entire board.
Lionsgate has been trying to buy Image for over a year, with Image spurning its advances. The companies are headed for a showdown at Image’s shareholder meeting on Oct. 10.
ISS also slammed Image for choosing “to pursue a series of shareholder disenfranchising moves over the past year.”
On Feltheimer’s new contract, the SEC filing said that if employment is terminated in connection with a change of control, he’ll be entitled to a payment of $2.5 million plus his annual salary through the end of his contract. If he quits in connection with a change of control, he’ll be entitled to the $2.5 million but not the rest of the payout.
Lionsgate has been in play for years, with just about every media company having kicked the tires. There were rumors earlier this year that CBS Corp. was looking to buy it.
The unvested portion of Feltheimer’s options and restricted share units will vest immediately upon change in control.
Feltheimer’s bonus will remain at the discretion of the board’s compensation committee. He’ll get one-time bonus payments of $750,000 if and when the shares hit $13, $16, and $19.
Lionsgate stock closed down 0.69% Wednesday at $10.14.