Madison Square Garden Entertainment Corp. (NYSE:MSGE) has announced the appointment of Layth Taki as Senior Vice President, Controller & Principal Accounting Officer, effective September 9, 2024. The appointment was disclosed in a recent 8-K filing with the Securities and Exchange Commission.
Mr. Taki, 49, joins MSGE from Ziff Davis, Inc., where he has served as Chief Accounting Officer since September 2022. His career includes significant roles at Altice USA, Inc., Cablevision Systems Corporation (NYSE:CVC), and earlier at PricewaterhouseCoopers, LLP, focusing on technology, communications, and entertainment clients.
Under the terms of the employment agreement effective July 24, 2024, Mr. Taki will receive an annual base salary of $500,000, with an annual target bonus opportunity of at least 50% of his base salary, starting with the fiscal year commencing July 1, 2024. Additionally, he is expected to participate in long-term incentive programs with a target value of no less than $500,000.
Mr. Taki will also receive a one-time special cash payment of $250,000 within 30 days of his commencement date. However, if his employment terminates before the first anniversary of the start date, except under certain conditions, he will be required to refund this amount. Moreover, he will be awarded restricted stock units worth $750,000, which will vest over three years starting in 2025.
The agreement includes provisions for severance payments and bonuses in the event of involuntary termination without cause or termination by Mr. Taki for good reason before the third anniversary of his start date. Additionally, Mr. Taki has agreed to a noncompetition clause effective until one year post-termination.
In other recent news, Madison Square Garden Entertainment (MSG Entertainment) has been making headlines with a slew of developments. Goldman Sachs upgraded MSG Entertainment's stock from Neutral to Buy, citing several factors including strong event bookings, high demand for the Christmas Spectacular, and anticipated margin expansion. The firm also highlighted the durability of MSG Entertainment's business model and its attractive valuation.
In addition to the stock upgrade, MSG Entertainment announced the renewal of James L. Dolan's employment agreement as Executive Chairman and CEO. This move is part of the company's strategic leadership planning, ensuring continuity at the helm of the entertainment giant.
MSG Entertainment has also been the focus of positive financial outlooks from Guggenheim and BofA Securities. Guggenheim reaffirmed its Buy rating on the company, maintaining a price target of $42.00, following MSG Entertainment's third fiscal quarter earnings. Meanwhile, BofA Securities maintained a Buy rating for MSG Entertainment with a steady price target of $43.00, despite some initial concern among investors due to a revision in the company's AOI definition.
Lastly, MSG Entertainment reported a 13% year-over-year rise in revenues reaching approximately $228 million for the fiscal 2024 third quarter, attributing this growth mainly to higher concert revenues and suite license fees. The company also raised its expected adjusted operating income (AOI) for the year to a range of $200 million to $210 million. These are recent developments that investors should take note of.
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