Verklin Exits As One Of Aegis' Top Paid Execs, 2007 Results Outperform Industry

David Verklin, who on Monday announced plans to step down as head of Aegis Group's North America and Latin America media operations, once again was one of the highest paid media executives on Madison Avenue, grossing $1.26 million in total 2007 compensation, according to information contained in Aegis' annual report released to shareholders this morning. Most of his earnings came from salary ($818,000), as well as about $360,000 in bonuses.

That made Verklin the fourth highest paid Aegis executive behind Chairman-CEO Robert Lerwill's $2.406 million, Aegis Media Global CEO Mainardo de Nardis' $1.675 million, and Synovate CEO Adrian Chedore's $1.348 million in total compensation.

Verklin actually earned less from Aegis in 2007, then he did in 2006, when he raked in total compensation of $1.607 million, based on current exchange rates from the British pound.

Verklin also holds 201,349 shares of Aegis stock. Aegis shares are currently trading at about $2.41.

Verklin, who announced plans to step down at year's end, and turn management of Carat North America to his hand picked successor Sarah Fay, said he would be available to consult Aegis for several months after that. His original July 1, 1998 contract requires him to give Aegis six months notice, but Verklin has said he began discussing succession plans 14 months ago.

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Verklin said he plans to take some time off before pursuing another role in the industry, and said it was unlikely to be in another agency role. Trade magazine Advertising Age published a speculative report that Verklin is likely to take a role heading Project Canoe, a cross-industry venture being formed by six leading cable TV operators in the U.S. to create a seamless electronic system for buying and selling local cable TV advertising, interactive and addressable advertising features, and to harness the powerful return path data locked inside their digital set-top boxes. Aegis insiders say that Verklin has not accepted any new jobs, and is earnestly still contemplating his future.

On Monday, Verklin sought to dispel speculation that the timing of his departure was in someway tied to lackluster results at Aegis, and especially within its Carat North America unit. According to Aegis 2007 annual report, the company reported organic revenue growth of 9.8%, almost twice as fast as the rest of the market.

During 2007, Aegis Media had revenues of $1.341 billion, 26% of which came from its Isobar digital and interactive media services, which rose by 20% year-over-year vs. an average industry interactive media services growth rate of 8%.

Aegis Media's total revenues rose 12.7% over 2006. Its operating profit rose to $862 million, up from $799 million last year.

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