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iHeartMedia executive's contract extended to 2026

EditorLina Guerrero
Published 11/01/2024, 05:09 PM
IHRT
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SAN ANTONIO, TX - iHeartMedia (NASDAQ:IHRT), Inc. has announced an extension and amendment to the employment agreement with one of its top executives, according to a recent SEC filing. Jordan R. Fasbender, the company's Executive Vice President, Chief Legal Officer, and Corporate Secretary, has had her contract extended through September 30, 2026, with automatic annual renewals unless either party opts out.

Effective Monday, Fasbender's annual base salary was increased to $825,000 and is set to rise again to $850,000 on October 1, 2025. Additionally, her target bonus has been raised to 115% of her annual base salary. Starting with the 2025 fiscal year, the company also plans to grant Fasbender an annual equity award valued at approximately $1,000,000. However, this award and its specifics are subject to the approval of the Compensation Committee of the company's Board of Directors.

The changes to Fasbender's employment terms were formalized on October 28, 2024, as detailed in the amended and restated employment agreement. This move reflects the company's commitment to retaining its senior leadership team and aligning executive compensation with performance targets.

iHeartMedia, which operates under the Radio Broadcasting Stations industry with the Central Index Key of 0001400891, is headquartered at 20880 Stone Oak Parkway, San Antonio, Texas. The company is listed on the Nasdaq Global Select Market under the ticker symbol NASDAQ:IHRT.

This update on executive compensation comes directly from an 8-K filing with the Securities and Exchange Commission by iHeartMedia, Inc. The company, known for its presence in the media and entertainment sector, has not disclosed any further details regarding the decision or its implications for the company's strategic direction.

In other recent news, iHeartMedia reported steady growth in Q2 2024, with an adjusted EBITDA of $150 million and a 1% year-over-year increase in consolidated revenues. The company's Digital Audio Group saw a 10% increase in revenues, while the Multiplatform Group's revenues declined by 3%. Looking ahead, iHeartMedia anticipates a mid-single-digit increase in revenues for Q3 and the full year of 2024, with political revenues projected to be 20% higher than the 2020 presidential election cycle.

BofA Securities maintained its underperform rating on iHeartMedia shares, expecting the company to achieve its projected third-quarter revenue of $1 billion, a 5% year-over-year increase. The firm's outlook anticipates iHeartMedia's third-quarter 2024 earnings to mirror recent patterns, with a boost from political advertising.

Goldman Sachs also maintained a neutral rating on iHeartMedia shares, following the company's Q2 earnings that surpassed consensus expectations in both revenue and adjusted EBITDA. However, the third-quarter outlook provided by iHeartMedia was mixed, predicting revenue above consensus but adjusted EBITDA below.

In other developments, iHeartMedia is investing in technology upgrades, including a Programmatic platform, and is in active discussions with debt holders to improve its capital structure.

InvestingPro Insights

As iHeartMedia, Inc. (NASDAQ:IHRT) extends its commitment to key executive Jordan R. Fasbender, investors may find additional context in recent financial data and market performance. According to InvestingPro, IHRT has shown a significant return of 15.12% over the last three months, indicating some positive momentum despite a challenging year-to-date performance.

The company's market capitalization stands at $317.24 million, with revenue for the last twelve months reaching $3.75 billion. However, an InvestingPro Tip highlights that IHRT is not expected to be profitable this year, which aligns with the reported negative earnings per share of -$6.64 for the same period.

Interestingly, another InvestingPro Tip notes that IHRT's liquid assets exceed its short-term obligations, suggesting a degree of financial stability that could support the company's ability to honor executive compensation packages like Fasbender's.

For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into iHeartMedia's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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