Comcast said it signed a new employment agreement with recently named president Michael Cavanagh that runs through December 31, 2027.
According to a filing with the Securities & Exchange Commission, the deal calls for Cavanagh to receive an annual base salary of $2.5 million, effective March 1, 2023.
Cavanagh also gets a special performance-based option to purchase 2 million shares of Comcast Class A common stock, valued at $14.8 million.
The performance award is based on average annual growth in free cash flow over five years. If free cash flow grows 8%, Cavanagh gets 100% of the award. If growth is 6%, he gets 50%. The maximum award -- 200% -- would come if growth is at least 12%.
“The Performance Award is designed to ensure leadership continuity over the longer term, enhance retention in response to increasing competition for high-performing talent and incent company financial performance by aligning compensation with rigorous performance targets that drive long-term shareholder value creation,” Comcast said in the filing. “The company believes that FCF per share is an important metric which measures, among other things, cash remaining after capital investments that allows us to repay indebtedness, make strategic investments and return capital to shareholders.”
Cavanagh received total compensation of $27.4 million in 2021, including $10.1 million in stock awards. ■
