8-KLeadership ChangesExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Executive Changes (Apr 13, 2010)

Filed April 13, 2010For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K report on April 13, 2010, announcing significant executive leadership changes. The most impactful news for investors is the official appointment of Michael J. Lovett as President and Chief Executive Officer, effective immediately. Lovett, who had been serving as Interim CEO and COO since February 28, 2010, has a long history within the company and previous experience at other telecommunications firms. This appointment is accompanied by details of his amended and restated employment agreement, which includes a base salary of $1,300,000, a target annual bonus of 165% of base salary, and a significant cash retention bonus of $2,210,000. The agreement also outlines long-term incentive awards, including a stock option grant for 2010 and future annual grants valued at $4,500,000. Additionally, the departure of Chief Financial Officer Eloise E. Schmitz was announced, with her employment set to conclude on July 31, 2010, upon the expiration of her agreement. These executive changes signal a new phase for Charter's leadership.

Key Highlights

  • 1Michael J. Lovett officially appointed President and CEO, effective April 12, 2010.
  • 2Lovett's employment agreement includes an annual base salary of $1,300,000.
  • 3Target annual cash performance bonus is 165% of base salary.
  • 4A cash retention bonus of $2,210,000 is part of Lovett's compensation package.
  • 5Lovett will receive a stock option grant of 215,000 shares for 2010, with future annual grants valued at $4,500,000.
  • 6Chief Financial Officer Eloise E. Schmitz will depart the company on July 31, 2010.
  • 7Lovett's employment agreement includes a three-year term with automatic one-year renewals, a one-year non-compete, and a two-year non-solicitation clause.

Frequently Asked Questions

Michael J. Lovett has been appointed as the President and Chief Executive Officer, effective immediately as of April 12, 2010. He was previously serving as Interim President and CEO.

Mr. Lovett's compensation package includes an annual base salary of $1,300,000, a target annual bonus of 165% of his base salary, a cash retention bonus of $2,210,000, and long-term incentive awards including a stock option grant for 215,000 shares in 2010 and future annual grants valued at $4,500,000.

Yes, Eloise E. Schmitz, the Executive Vice President and Chief Financial Officer, will be leaving the company when her employment agreement expires on July 31, 2010.

Mr. Lovett's employment agreement includes a one-year non-compete provision and a two-year non-solicitation clause. The agreement has a three-year term and automatically renews annually unless terminated with 90 days' notice.