AOL CEO Tim Armstrong Makes A Lot Of Money

AOL CEO Tim Armstrong

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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