By Matt Andrejczak
Hasbro Inc.'s (HAS) chief executive has signed a more lucrative
employment contract with the world's No. 2 toy maker, with a fatter
base salary along with retention compensation.
Brian Goldner agreed to serve as Hasbro's chief through 2014
under his amended contract, according to a Securities and Exchange
Commission filing made public Tuesday. The company increased his
base salary to $1.2 million on Feb. 1, up from $1 million. It also
sweetened the pot with two one-off retention awards, on top of the
annual equity awards he bagged in February.
Hasbro awarded Goldner 125,000 performance share units to be
earned based on the toy maker's financial performance from 2010
through 2012.
The executive also netted 687,000 stock options, carrying an
exercise price of $38.39 a share. The options will vest in five
equal installments in March 2011 through 2014.
The agreement replaces a May 2008 deal, when Goldner was
promoted to the top post from chief operating officer. His original
employment contract was set to expire in May 2011. In the restated
contract, Hasbro said it wished to secure an "enhanced
noncompetition commitment" from Goldner.
Since Goldner became chief, Hasbro shares are up 14%. He has
strengthened Hasbro's ties with Hollywood movie studios and struck
a joint-venture deal with Discovery Communications Inc. (DISCA) to
launch a new kids' cable-television network.
Dubbed "the Hub," the network will make its debut this fall and
offer Hasbro a broader platform to promote its brands. Movies and
cable TV are seen as vehicles to turn Hasbro into more of an
entertainment company, rather than just a toy maker.
On the movie side, Hasbro sold $592 million of Transformers
action figures in 2009--toys made for last summer's
blockbuster-movie sequel. The sales marked a 23% increase over the
previous line of action figures tied to the 2007 "Transformers"
movie.
In 2009, Hasbro shares rose 9%, compared with the 25% gain for
rival Mattel Inc. (MAT).
So far in 2010, other incentive pay collected by Goldner
includes 312,094 in options and 36,698 in shares for meeting
specific earnings and revenue targets since 2007.
Hasbro has yet to file its proxy statement detailing 2009
executive pay.
-Matt Andrejczak; 415-439-6400; AskNewswires@dowjones.com