10-K/APeriod: FY2013

Liberty Media Corp Annual Report (Amendment), Year Ended Dec 31, 2013

Filed April 30, 2014For Securities:FWONKFWONAFWONB

Summary

This 10-K filing from Liberty Media Corporation (FWONK) for the fiscal year ending December 31, 2013, provides insights into the company's corporate governance, executive compensation, and significant shareholder information. The filing highlights the experienced leadership team, including Chairman John C. Malone and CEO Gregory B. Maffei, who possess extensive backgrounds in the media and telecommunications industries. The company's compensation philosophy emphasizes aligning executive interests with those of stockholders through performance-based bonuses and equity incentives. Key financial and operational details are implicitly discussed through compensation structures. The report details the compensation packages for named executive officers, including base salaries, performance-based bonuses tied to corporate and individual performance metrics (such as Adjusted OIBDA), and equity awards granted in prior years. The filing also outlines various agreements and relationships, including services agreements with Liberty Interactive and Starz, and details director compensation, emphasizing independence and adherence to corporate governance standards. Shareholders should note the significant beneficial ownership by John C. Malone and major institutional investors.

Financial Statements
Beta
Revenue$4.00B
SG&A Expenses$764.00M
Operating Expenses$3.19B
Operating Income$814.00M
Interest Expense$132.00M
Net Income$8.78B
EPS (Basic)$24.73
EPS (Diluted)$24.46
Shares Outstanding (Basic)355.00M
Shares Outstanding (Diluted)359.00M

Key Highlights

  • 1The company is led by a seasoned management team, with John C. Malone as Chairman and Gregory B. Maffei as CEO and President, both having extensive experience in the media and telecommunications sectors.
  • 2Executive compensation is designed to align with stockholder interests, featuring a significant portion allocated to performance-based bonuses and equity incentives, with a focus on increasing stockholder value.
  • 3The 2013 performance-based bonus program for named executive officers was structured around both corporate and individual performance metrics, with corporate performance measured by Adjusted OIBDA exceeding a threshold of $370 million.
  • 4No new equity incentive awards were granted to named executive officers in 2013, as prior multi-year grants were intended to cover longer periods, reflecting a strategy to encourage long-term retention.
  • 5John C. Malone's compensation is governed by a long-standing employment agreement, with a unique structure involving a five-year rolling term and an annual allowance for personal expenses, including corporate aircraft use.
  • 6The filing details significant beneficial ownership by John C. Malone, holding substantial amounts of both Series A (LMCA) and Series B (LMCB) common stock, alongside major institutional investors like Berkshire Hathaway Inc.
  • 7The company maintains a policy that a majority of its board members are independent, with specific directors identified as meeting Nasdaq's independence standards.

Frequently Asked Questions

Liberty Media Corporation's compensation philosophy aims to align the interests of its named executive officers with those of its stockholders, with the primary goal of increasing stockholder value. This is achieved through compensation packages that include both cash and stock-based incentives, with a strong emphasis on performance-based compensation.

The compensation committee determines executive compensation based on factors such as individual performance, the scope of responsibilities, company financial performance (including Adjusted OIBDA), and competitive compensation in the industry. For 2013, performance-based bonuses were composed of an Individual Performance Bonus and a Corporate Performance Bonus, with the latter tied to achieving a minimum combined Adjusted OIBDA.

As of March 31, 2014, John C. Malone is a significant beneficial owner, holding substantial amounts of both Series A (LMCA) and Series B (LMCB) common stock. Other major beneficial owners include Berkshire Hathaway Inc., Horizon Kinetics LLC, S.A.C. Capital Advisors, L.P., and Gates Capital Management, Inc.

Liberty Media Corporation has several agreements with related parties, including services agreements with Liberty Interactive and Starz, which govern the provision of various services and the allocation of personnel costs. Additionally, there are facilities sharing agreements and aircraft time-sharing agreements with Starz.