AOL CEO Tim Armstrong makes a lot of money. He’s also going to get a lot of stock in the new AOL.
AOLers and Time Warner investors should be fine and happy with this, because why else would a top Google exec go to a company that needs so much help.
Details, according to AOL’s filing with the SEC yesterday:
- His contract runs through April 7, 2012.
- His annual base salary is $1 million.
- He gets a annual cash bonus, with a $2 million target and a $4 million maximum. It’s guaranteed to be $1.5 million in 2009.
- He gets $50,000 worth of group life insurance.
- He’ll be awarded $10 million worth of Time Warner equity in 2009 and 2010.
- When AOL spins-off, he’ll get a grant of AOL stock options with a price equal to 1.5% of the company’s worth, up to $50 million.
- He gets twice the amount money it costs to take a out a life insurance policy equal to $4 million.
If Tim gets fired before the AOL spin-off, the companies he can’t work for include: AT&T , Bertelsmann, CBS Corporation, Comcast Corporation, The Walt Disney Company, General Electric Corporation, Google, Microsoft Corporation, The News Corporation Ltd., Sony Corporation, Viacom Inc. or Yahoo! Inc.
If Tim leaves AOL after the spin-off, he can’t work for Google Inc., Microsoft Corporation, or Yahoo! Inc.
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