Business Context and Reporting Period
This Form 8-K filing by Entravision Communications Corporation reports a material definitive agreement entered into on December 1, 2005. The report was filed on December 6, 2005.
Key Financial Metrics
This filing does not contain revenue, profit, cash flow, margin, debt, or liquidity metrics. It focuses exclusively on executive compensation terms.
Material Changes
The Company entered into a new employment agreement with John F. DeLorenzo, Executive Vice President and Chief Financial Officer, replacing a prior agreement effective December 1, 2002.
- Base Salary: Set at $408,807 per year for the term ending December 31, 2008.
- Salary Review: The Compensation Committee may increase the base salary on the first and second anniversaries of the effective date.
- Bonus: Eligible for an annual bonus of up to 50% of base salary, at the Committee's discretion.
- Equity: Eligible for stock options, restricted stock, and other grants under the 2004 Equity Incentive Plan.
Outlook, Risks, and Contingencies
The agreement outlines specific severance contingencies. If employment is terminated without cause or voluntarily terminated for "good reason," Mr. DeLorenzo is entitled to:
- All accrued salary and approved bonuses through the termination date.
- Severance compensation equal to one year of his then-current annual base salary, paid in installments corresponding to customary paydays.
Investor Verification Checklist
- Verify the total compensation cost impact of the new base salary and potential bonus structure compared to the prior agreement.
- Confirm the specific definitions of "good reason" for voluntary termination within the full agreement text.
- Review the Company's 2004 Equity Incentive Plan to understand the remaining pool available for future grants to Mr. DeLorenzo.