Cablevision Execs Tally Big Raises In 2007
Dolan Sees Pay Rise 51% Despite Down Year For Cable Sector
By Mike Farrell -- Multichannel News, 4/9/2008 3:38:00 PM
Cablevision Systems CEO James Dolan raked in $23.9 million in salary and other compensation in 2007, a 51% increase over the $15.8 million in total compensation he received in 2006.
According to a proxy statement filed with the Securities and Exchange Commission on April 9, Dolan received $1.8 million in salary, $3 million in stock awards, $1.8 million in option awards, $10.3 million in non-equity incentive compensation and $6.8 million in other compensation in 2007.
That compares to his $1.6 million salary, $3.9 million in stock awards, $2.6 million in option awards and $6.8 million in non equity incentive compensation in 2006.
The increase in Dolan’s compensation came in a year where the New York-centric cable operator reported strong growth.
Cablevision reported revenue of $6.5 billion (up 11.3%), and adjusted operating cash flow of $2.1 billion (up 16.8%) in 2007. Basic subscriber growth was essentially flat for the year, a stark contrast to its peers who lost thousands of basic customers during the year.
And though Cablevision stock declined about 14% in 2007—mainly the result of shareholders rejecting the Dolan family’s attempt to take the company private at $36.26 per share—it still fared better than the rest of the sector, which was down a collective 28% in 2007.
James Dolan wasn’t the only Cablevision executive to see his compensation rise in 2007.
His father, Cablevision founder and chairman Charles Dolan received $15.4 million in total compensation in 2007, a 30.5% bump from the $11.8 million he received in 2006.
Chief operating officer Tom Rutledge received $14.8 million in total compensation in 2006 up 34.8% from the $11.03 million he received in 2006 and vice chairman Hank Ratner received $19.8 million in total compensation, up 66.4% from the $11.9 million he received in 2006.
Chief financial officer Michael Huseby received $3.5 million in total compensation in 2007, up 40% from the $2.5 million he received in 2006.
A large portion of the compensation increases came from a one-time $10 per share special cash dividend issued by the company to all shareholders. According to the proxy statement, that dividend represented about $6.2 million of James Dolan’s total compensation for the year, $5 million of Ratner’s pay, $3.2 million for Rutledge and $2.5 million for Charles Dolan.
“Cablevision's performance in 2007 was exceptional with all of the company's key business segments delivering impressive revenue and cash flow growth for the year,” Cablevision said in a statement. “The company's executive compensation is fully appropriate, reflecting this excellence in operating performance.”
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