8-KLeadership ChangesExhibits & Filings

CHARTER COMMUNICATIONS, INC. /MO/ 8-K Report, Executive Changes (Dec 16, 2010)

Filed December 16, 2010For Securities:CHTR

Summary

Charter Communications, Inc. (CHTR) filed an 8-K on December 16, 2010, detailing the approval of two new executive compensation plans by its Board of Directors on December 15, 2010. The first is the Executive Bonus Plan, designed to align executive and managerial compensation with financial performance and customer satisfaction goals. The second is the Executive Incentive Performance Plan, intended to provide performance-based bonuses that qualify for tax deductions under Section 162(m) of the Internal Revenue Code, subject to shareholder approval. These plans represent a strategic initiative by Charter Communications to enhance corporate identity and motivate its leadership team by linking compensation directly to the achievement of key business objectives. The Executive Incentive Performance Plan, in particular, introduces a structured approach to performance-based compensation, aiming to incentivize significant contributions while adhering to specific IRS guidelines for deductibility. Investors should note that these plans are designed to drive performance and ensure accountability among senior management.

Key Highlights

  • 1Approval of the Executive Bonus Plan for executive officers and certain managerial employees.
  • 2The Executive Bonus Plan aims to reward achievement of financial performance measures and customer satisfaction goals.
  • 3Approval of the Executive Incentive Performance Plan, effective January 1, 2011.
  • 4The Performance Plan is designed to provide qualified performance-based compensation bonuses that are exempt from the $1,000,000 deduction limitation under Section 162(m) of the IRC.
  • 5The Performance Plan requires shareholder approval of its material terms.
  • 6The Performance Plan will be administered by a Section 162(m) Committee of the Board.
  • 7Maximum bonus payable to a participant under the Performance Plan is $10,000,000 per calendar year.

Frequently Asked Questions

The primary purpose of the Executive Bonus Plan is to provide a strong corporate identity and to offer awards commensurate with the achievement of the Company's financial performance measures and customer satisfaction goals for executive officers and certain other managerial employees.

The Executive Incentive Performance Plan is designed to ensure that payments of qualified performance-based compensation in the form of bonuses are not subject to the $1,000,000 limitation on deductibility under Section 162(m) of the Internal Revenue Code, making them more tax-efficient for the company.

The Executive Incentive Performance Plan is effective January 1, 2011, and is contingent upon the approval of its material terms by the Company's shareholders.

Under the Executive Incentive Performance Plan, the maximum bonus amount payable to each participant for any calendar year performance period is $10,000,000.