Time Warner Cable heir apparent Rob Marcus will get a fatter paycheck to go along with his new roles as chairman and CEO of the nation’s second largest cable company, inking a three-year employment deal that will bring him about $16 million in its first year, according to documents filed with the Securities and Exchange Commission Monday.
Marcus, who currently serves as president and chief operating officer of the cable giant, will become chairman and CEO on Jan. 1, replacing Glenn Britt who is retiring on Dec. 31 after 12 years at the helm.
According to documents filed with the SEC on July 29, Marcus’ employment agreement takes effect on Jan. 1, 2014 and expires on Dec. 31, 2016. He will receive an annual salary of $1.5 million (up from the $1 million he currently makes), is eligible for a $5 million annual bonus (up from $3 million) and will receive up to $7.5 million annually in long-term incentive compensation. In addition, Marcus will receive a $2 million long-term incentive award.
That comes to $16 million, or about 60% above the $10.1 million he earned in 2012, according to the company’s annual proxy statement. The amount is in line with the $17.4 million Britt earned in 2012, according to the proxy.
If Marcus is terminated within 24 months of a change of control, he stands to reap three years of salary, and bonuses – totaling $19.5 million – and any unvested stock options or awards.
While the compensation package is a big bump from his previous year’s take, Marcus will rank in the middle of publicly traded MSO chief executives. Last year, Comcast chairman and CEO Brian Roberts received $29.1 million in total compensation; Cablevision Systems CEO James Dolan received $16.9 million and Charter Communications CEO Tom Rutledge received $5.3 million, according to those companies’ individual proxy statements.