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In a strategic move, Entravision Communications Corp (NYSE:EVC), a $172.4 million market cap media company with a notable 22.86% revenue growth in the last twelve months, has announced significant changes to its executive compensation structure. On Monday, the company filed an 8-K with the SEC revealing that for the fiscal year 2025, the base salaries of top executives have been substantially reduced in favor of equity compensation. According to InvestingPro analysis, the company currently offers an attractive 10.36% dividend yield and has maintained dividend payments for 15 consecutive years.
The Compensation Committee of Entravision, a media company headquartered in Santa Monica, California, decided to adjust the compensation of its executives to emphasize long-term performance incentives. Michael Christenson, CEO, Jeffery Liberman, President and COO, and Mark Boelke, CFO and Treasurer, will see their base salaries decreased by 47%, 38%, and 25% respectively compared to the previous fiscal year. This decision comes as the stock has experienced significant volatility, with InvestingPro data showing an 8.1% decline over the past week, though maintaining strong fundamentals with a healthy current ratio of 3.02.
Furthermore, these executives will not participate in the company's Executive Cash Incentive Bonus Plan for 2025, meaning they will not receive cash bonuses under this plan. Instead, they have been granted larger equity incentive awards, including restricted stock units and performance stock units, signaling a shift towards incentivizing performance through stock ownership.
The amendments to the executive compensation also include changes to the company's Severance Plan. If any of these executives experience a qualifying termination before December 31, 2026, severance payments will be calculated based on their base salary as of December 31, 2024, and the target bonus for fiscal year 2024. This ensures that despite the salary reductions, severance benefits will not be adversely affected.
The company believes these changes will better align the interests of its executives with those of its shareholders by focusing on long-term value creation. This move comes as part of a broader trend in corporate governance that seeks to tie executive compensation more closely to company performance and shareholder returns.
This restructuring of Entravision's executive pay is detailed in the Amendment Letters attached to the SEC filing, which provide the legal framework for the revised compensation agreements.
Investors and analysts will likely monitor how these adjustments impact Entravision's performance and management incentives. The company's shares are traded on the New York Stock Exchange under the ticker EVC. This report is based on statements from a press release.
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