8-KLeadership ChangesExhibits & Filings

COMCAST CORP 8-K Report, Executive Changes (Feb 13, 2008)

Filed February 13, 2008For Securities:CMCSACCZ

Summary

Comcast Corporation's February 13, 2008, 8-K filing primarily addresses changes in executive compensation and bonus structures. A significant development is the amendment to the agreement with Ralph J. Roberts, Chair of the Executive and Finance Committee. Effective February 13, 2008, Mr. Roberts' base compensation was reduced to $1 per year, and his death benefit, regular cash bonus, and annual equity grants were eliminated, reflecting his request while he continues to serve as an advisor to senior management. Additionally, the filing details the 2007 annual cash bonuses for named executive officers. Despite achieving 98% of their target operating cash flow, they elected to accept only 80% of their target bonuses, citing the company's share price and lower-than-expected free cash flow achievement, as well as alignment with bonuses received by other employees. For 2008, Comcast's Compensation Committee is adjusting the bonus structure for named executive officers to include free cash flow as a performance metric, allocating 80% to operating cash flow and 20% to free cash flow to better focus on capital expenditures and working capital management.

Key Highlights

  • 1Amendment to agreement with Ralph J. Roberts, reducing his annual base compensation to $1 and eliminating future bonuses and equity grants.
  • 2Mr. Roberts will continue to serve as an advisor to the CEO and senior management.
  • 3Named executive officers elected to accept 80% of their target 2007 annual cash bonuses, down from 98% achievement.
  • 4The reduction in 2007 bonuses was attributed to the company's share price, lower-than-expected free cash flow, and alignment with other employee bonuses.
  • 5For 2008, the Compensation Committee is modifying the executive bonus structure to include free cash flow as a performance metric.
  • 6The 2008 executive bonus targets will be weighted 80% on operating cash flow and 20% on free cash flow.
  • 7The inclusion of free cash flow aims to better incentivize executive focus on capital expenditures and working capital.

Frequently Asked Questions

Effective February 13, 2008, Ralph J. Roberts' base compensation was reduced to $1 per year. Furthermore, his death benefit, regular cash bonus, and annual equity-based grants were eliminated prospectively as per his request. He will continue to serve as an advisor to senior management.

Despite achieving 98% of their target operating cash flow for 2007, the named executive officers voluntarily accepted only 80% of their target bonuses. This decision was made in consideration of the company's share price, free cash flow results that were lower than anticipated, and to align their bonuses with those received by other employees.

For 2008, Comcast's Compensation Committee has revised the performance metrics for named executive officers' annual cash bonuses. The targets will now be based 80% on operating cash flow and 20% on free cash flow, a shift from the previous sole reliance on operating cash flow. This change is intended to provide a greater focus on capital expenditures and working capital management.

Definitions for operating cash flow and free cash flow are provided in Table 7 of Comcast's press release reporting third quarter 2007 results, which was filed under Item 2.02 of their Form 8-K on October 25, 2007.