Sotheby’s 8-K was filed yesterday with Tad Smith’s compensation. Smith earns $1.4m in base salary, a bonus of 200% of base as well as stock grants no less than $3m annually. In addition, Smith is being granted stock worth $6m to cover lost compensation at MSG:
The term of Mr. Smith’s Employment Agreement runs from March 31, 2015 (the “Commencement Date”) through March 31, 2020. The Employment Agreement provides that Mr. Smith’s annual base salary will be $1,400,000, and that his target annual bonus opportunity will be 200% of his annual base salary. For the 2015 calendar year, his annual bonus opportunity will be based on the salary payable to him from and after July 1, 2015. Mr. Smith will also be entitled to receive annual long-term incentive award opportunities consistent with his position, but in no event shall such opportunities have a grant date value of less than $3,000,000 (except that his 2015 long-term incentive award opportunity will be pro-rated based on his service from and after July 1, 2015).
The Agreement provides Mr. Smith with certain compensation from the Company that is intended to replace incentive and other compensation opportunities that Mr. Smith lost by leaving his employment with MSG. Upon the Commencement Date, as an inducement for him to join the Company, he will receive 158,638 shares of the Company’s restricted stock that will vest in accordance with the following schedule, which substantially corresponds to the time at which the forfeited MSG opportunities would otherwise have been eligible to become vested.
8-K_BID_New CEO (Edgar)