Charter Communications' incoming CEO Tom Rutledge has inked a four-year deal that includes a $2 million base salary, a $3.5 million target annual bonus starting in 2013, as well as stock options that could be worth tens of millions of dollars more, according to an SEC filing.
Former Cablevision COO Rutledge joined the cable operator this week on a part-time basis and takes over as president-CEO on Feb. 13.
Rutledge’s contract includes 646,800 stock options and 611,700 shares of restricted stock that could be worth multimillions. Charter was trading at close to $56 a share in midday activity Thursday.
The executive can use the company jet for commuting purposes and up to 50 hours for personal use per year.
If Rutledge is terminated without cause or resigns for “good reason,” he is entitled to a severance payment equal to 2.5 times his salary at the time, plus target bonus money and vesting opportunities with stock options.
Upon leaving the company, he has a one-year non-compete clause. The contract is scheduled to expire in February 2016.
Until he takes over in February, he can earn up to $8,000 a week. He will succeed Michael Lovett.