CC $

[justareporter]

Clear Channel’s top two execs banked their 2007 bonuses, because they hit their goals.
For Mark Mays and Randall Mays, that meant an extra $6,625,000 each in stock – because Clear Channel exceeded its goal for “core OIBDAN.” (That simply means “operating income before depreciation, amortization, non-cash compensation expense and gain/loss on disposition of assets.”) So for all the hoopla about the Clear Channel going-private deal going sideways and about the radio revenues - #1, I’m told that Clear Channel radio did better than the assumptions buyers Bain Capital and Thomas H. Lee Partners made about the deal. And #2, CC easily topped the “core OIBDAN” goal set for the Mays brothers to hit their bonuses. The goal line was $1.8 billion, and Clear Channel actually did $2.2 billion. So much for those Wall Streeters who keep crying the blues about radio’s performance. Though I know some shareholders of “CCU” who weren’t too thrilled about the suspension of the dividend this year, at the request of buyers Bain Capital and Thomas H. Lee Partners. So the Clear Channel SEC filing actually isn’t quite one of those stories about The Bigs raking in all the dough in sight -

Does it bother anyone that the Mays fellas collect millions in compensation while their stations shed anything with a heartbeat? CC beat expectations by cutting not only to the bone but by breaking the backs of the few remaining employees.

But to hear the folks at the NAB talk they are almost god-like.

Sad.

 

[Goat Rodeo Cowboy]

All of this may be emotional to those of us who read here because we have an affection for, a love for, an addiction for.... things broadcasting.

This isn't limited to broadcasting as an issue. People who work for Home Depot have gone through this. People who work for automobile companies have gone through this. People who work for airlines have gone through this. Industry after industry has seen business policy that pits the financial issues of the rank and file workers up against the the financial issues of the top executives.

Why would you expect broadcasting to be exempt from this economic issue which is experienced by just about every line of business endeavor you can name.

If this is a proof that there is some kind of flaw in the American business and financial model, then the citizens should lean upon their elected representatives to bring about change in laws that brings about some different kind of business climate.

Do you have a proposal how we as a nation deal with this issue that will sit will with a people who are intent on having a system of capitalism rather than a system of whatever you wish to name the opposite of capitalism. Granted, it does not have to be a question of either/or. We can bend the guidelines so that capitalsim appears to more people to be more equitable to more people.

What is your suggested change?

 

[kyscott]

What is your suggested change?

Leave it alone. It will correct itself. What you are seeing Citadel, Radio One and Clear Channel going through is the result of corporate greed. it will take care of itself, because we are about to see a serious blood letting from the top now. Shareholders are starting to wise up that when the stock of your company falls below a dollar, yet your CEO gets several million dollars worth of back pay, that's not a company you need to be involved with....which is why your stock will fall further and you'll be out a job soon.

Sit back and enjoy the self correction. Afterwards, people who are passionate about broadcasting will fill the void.

 

[justareporter]

Why would you expect broadcasting to be exempt from this economic issue which is experienced by just about every line of business endeavor you can name

Because we don't sell shoes. We don't make burgers. We are not just "anotehr business." We are here to sereve the public and to make money in the process. Somehow the Mays family and the others have turned the ship upside down.

Mr. Kyscott is pretty much on target. CC has to go private because if it remains public the shareholders will revolt and throw out the Mays folks. It is the last hurrah from a group that has done their best to kill radio.

But it is still sad to watch.