Altice USA, Inc. (NYSE:ATUS) has announced a significant compensation arrangement for its Chief Executive Officer, Dennis Mathew. The company’s Compensation Committee approved a cash performance award (CPA) valued at $5 million, which is part of the company’s long-term incentive plan.
According to InvestingPro data, this comes at a crucial time as Altice USA, currently valued at $1.2 billion, has shown strong momentum with a 23.7% price return over the past six months, despite facing profitability challenges in recent quarters. This award, disclosed in a recent 8-K filing with the Securities and Exchange Commission, will be contingent upon the achievement of specific financial targets for the fiscal year 2027.
The CPA is structured as a cash-denominated award that may be settled in either cash or shares of Altice USA’s Class A common stock at the Committee’s discretion. The vesting of this award is dependent on the company reaching certain revenue and adjusted EBITDA goals for the fiscal year 2027. Furthermore, the vesting is subject to Mathew’s continued service to the company until the Committee certifies the achievement of these targets.
This strategic move by Altice USA, a Delaware-incorporated company specializing in cable and other pay television services, is aimed at incentivizing the CEO to drive the company towards financial growth and stability.
While specific financial targets haven’t been disclosed, InvestingPro analysis indicates the company maintains strong operational metrics with an EBITDA of $3.4 billion and a robust gross profit margin of 67.6%. The company’s current Fair Value assessment suggests it may be slightly undervalued at current levels.
The decision was formalized on December 18, 2024, and was publicly filed on December 20, 2024. Altice USA operates out of Long Island City, New York, and this latest development is part of the company’s broader efforts to align executive compensation with the company’s performance and shareholder interests.
The announcement is based on a press release statement and forms part of the company’s regulatory disclosures to the SEC. It is important to note that the CPA is a component of the company’s Amended and Restated Altice USA 2017 Long Term Incentive Plan, which has been amended to accommodate such awards. The plan is designed to retain and motivate key executives like Mathew by tying a portion of their compensation to the company’s success.
Investors and market watchers will likely follow the company’s performance closely in the coming years to see if the established targets are met and if the CEO’s performance award will be vested as planned.
For those seeking deeper insights, InvestingPro offers comprehensive analysis with 8 additional key tips and a detailed Pro Research Report, providing crucial metrics and expert analysis to help investors make informed decisions about Altice USA’s future prospects.
In other recent news, Altice USA announced an executive transition with Colleen Schmidt, Executive Vice President, Human Resources, set to take on a Senior Advisor role effective December 31, 2024, before leaving the company on March 28, 2025.
Citi analysts have maintained their Buy rating on Altice USA, citing opportunities for cost reduction and positive price actions in 2025. Meanwhile, TD Cowen, despite reducing its price target, continued its Buy rating based on the company’s Q3 2024 performance and future goals.
Altice USA’s Q3 2024 earnings call revealed a commitment to enhancing customer experience and operational stability, with a focus on fiber and mobile customer growth. The company reported Q3 revenue of $2.2 billion and adjusted EBITDA of $862 million despite a decline in total and residential revenue. Altice USA added 47,000 new fiber customers and 36,000 new mobile lines in Q3, with the aim of reaching over 1 million customers in each segment by 2026 and 2027, respectively.
Citi’s analysis suggests that Altice USA’s strategic moves and focus on fiber deployment could drive future success, even as the company navigates the competitive cable industry. Similarly, TD Cowen sees the company’s clear progress and achievable goals as a positive sign, despite a lower EBITDA.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.