Imax Corp.’s board of directors has extended CEO Richard L. Gelfond’s contract for three years, to the end of 2019.
The giant-screen specialist made the disclosure Monday in an 8k filing with the U.S. Securities and Exchange Commission. The board said it entered into the employment agreement on Nov. 8, replacing and superseding Gelfond’s prior three-year employment agreement, which would have expired on Dec. 31. Gelfond has been the CEO since 2009.
Gelfond will receive an annual base salary of $1.2 million and continue to be eligible for an annual discretionary incentive bonus of up to two times his base salary, with a target bonus equal to 100% of his base salary. The bonus is granted at the discretion of the board and is based upon the success of the company in achieving goals and objectives that will be established by the board after consultation with Gelfond.
Gelfond will receive three annual stock option grants valued at $3.3 million and granted annually in January. He will also receive an upfront grant of restricted share units with a grant date value of $6.6 million, with one-third of the RSUs vesting on Jan. 1, 2018.
If Gelfond’s employment is terminated without cause, or he resigns for good reason, the company will continue to pay him his annual base salary and benefits for a period equal to whichever is greater — 12 months or the remainder of his contract.
On Oct. 20, Imax reported lower third-quarter earnings of $7.9 million, or 12 cents a share, on slightly higher revenue of $86.6 million, and issued a bullish forecast for the current quarter. The results were in line with Wall Street forecasts.
“We anticipate box office will pick up again in the fourth quarter with titles such as Marvel’s ‘Doctor Strange,’ which includes more than an hour of footage specially formatted exclusively for Imax, the ‘Harry Potter’ spinoff ‘Fantastic Beasts and Where to Find Them,’ and of course ‘Rogue One: A Star Wars Story,'” he said.