Liongate has approved a five-year employment agreement with chief executive Jon Feltheimer running through July 31, 2029.
The latest deal, which replaces his latest contract from 2022, includes an annual base salary of $1.5 million and target bonus of $7.5 million starting in fiscal 2025. The maximum bonus is 200% of the target, according to an SEC filing today – so $14 million.
Any portion of the bonus exceeding $1.5 million for a particular year may be paid to him in the form of fully vested company common shares.
In addition, the employment agreement calls for annual equity-based grants for FY 2025-2029 with an aggregate target grant date value of $10 million — with the actual value determined by the board’s compensation committee each year based on the company’s financial performance for the prior year against targets set by the board and Feltheimer.
It also includes “reasonable” club fees and limited use of corporate aircraft.
Lionsgate is in the process of splitting into two publicly traded companies – Lionsgate Studios and Starz. The separation has started with Lionsgate Studios merging with a SPAC and spinning off earlier this year. The split is expected to be completed by the end of 2024. Like all media, the company led by the highly-regarded CEO was squeezed by the Hollywood strikes and aftermath but has benefitted from ongoing strong library revenue, solid IP and a focus on delivering a stream of content to third parties.
