Bullish indicating open at $55-$60, IPO prices at $37
Altice USA, Inc. (NYSE:ATUS), a prominent player in cable and pay television services with annual revenue of $9 billion, disclosed changes in executive compensation in a recent SEC filing. According to InvestingPro data, while the company faces profitability challenges, analysts expect a return to positive earnings this year. The Compensation Committee of the company’s Board of Directors approved an increase in annual compensation for two top executives.
Dennis Mathew, the Chief Executive Officer and Chairman of the Board, received a raise effective January 1, 2025. His base salary is now set at $1,550,000. Additionally, his target annual cash incentive award has been increased to $3,000,000, and his annual long-term incentive target is now $10,000,000. It is noted that Mathew does not receive any compensation for his role as a Board member. The compensation changes come as the company’s stock has shown strong momentum, with InvestingPro data showing a remarkable 78% price return over the past six months.
Similarly, the company’s Chief Financial Officer, Marc Sirota, also benefited from a compensation adjustment. His base salary has been raised to $650,000, with a target annual cash incentive award of 150% of his base salary. Sirota’s annual long-term incentive target is now $3,500,000.
These changes in executive pay reflect the company’s financial strategy and its commitment to aligning the interests of its leadership with the long-term goals of the company and its shareholders. The updated compensation structure is designed to incentivize performance and retain key management personnel crucial for the company’s ongoing operations and future success.
The information is based on a press release statement and provides insights into the company’s latest financial decisions regarding executive compensation. The filing does not elaborate on the reasons behind the increases or the specific criteria used to determine these new compensation targets. It remains a straightforward report of the changes in executive pay at Altice USA, as per the regulatory document filed with the SEC. With the company’s next earnings report due on February 13, 2025, investors seeking deeper insights can access comprehensive analysis and additional ProTips through InvestingPro’s detailed research reports, which provide valuable context for evaluating management decisions and company performance.
In other recent news, Altice USA, Inc. has been making notable moves. The company’s Compensation Committee approved a $5 million cash performance award for CEO Dennis Mathew, contingent upon achieving specific financial targets for fiscal year 2027. This award, part of the company’s long-term incentive plan, may be settled in either cash or shares of Altice USA’s Class A common stock, dependent on the company’s revenue and adjusted EBITDA goals.
In addition to this, Altice USA announced the transition of Colleen Schmidt, Executive Vice President, Human Resources, to a Senior Advisor role to the CEO, effective December 31, 2024. Schmidt will continue to vest in incentive-based awards and participate in company benefit plans through her separation date on March 28, 2025.
Furthermore, Citi analysts have maintained a Buy rating on Altice USA stock. The firm increased the price target to $3.00 from the previous $2.50, reflecting an updated weighted average cost of capital in their discounted cash flow analysis. The firm’s positive outlook is based on the company’s opportunities for cost reduction, stabilization of financial leverage, and potential revenue growth from customer upgrades and positive pricing actions in 2025.
These are the recent developments that have taken place at Altice USA.
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