COVID-19 Forces Michael Rapino and Other Live Nation Executives to Partially Forfeit Bonuses
The CEO of Live Nation and two other senior executives will have their restricted stock forfeited, and their daily stock and cash payments will be reduced.
According to a report filed with the Securities and Exchange Commission, Live Nation CEO Michael Rapino will lose nearly $4 million in stock after the concert promotion business missed sales expectations due to the pandemic.
Rapino would give up 47,778 performance-based restricted shares in the company, which have been trading at a 16 percent premium to the stock's pre-pandemic peak of $76 per share. According to Live Nation's 2020 annual report, the forfeited stock was released in 2020 in lieu of cash rewards for incentives received in 2019, as part of a "cash savings program in conjunction with the global COVID-19 pandemic."
Due to the sales shortfall, Live Nation President Joe Berchtold and Chief Financial Officer Kathy Willard both forfeited restricted stock today. Standard stock and cash payments were also decreased as part of the adjustment, according to a Live Nation spokesperson. Rapino revealed in April that he would be reducing his salary to $0 as part of a company-wide cost-cutting effort prompted by the pandemic.
Rapino will receive a $6 million cash bonus if the company achieves an adjusted operating income of $875.0 million in 2019, and between $6 and $12 million if he achieves between 100 percent and 110 percent of the AOI goal, according to the company's compensation committee. Rapino received a cash award of $11.4 million, which he deferred until the end of 2020, after reaching 109 percent of his aim AOI ($942 million). The final breakdown of Rapino's cash and stock options will be published in Live Nation's annual proxy statement later this month.