A raise for someone at the bankrupt Cumulus

From Tom Taylor's newsletter today.

A raise for Suzanne Grimes of Cumulus and Westwood One.
Her base salary will rise from $600,000 to $650,000 starting in July. Her new employment agreement as EVP of Corporate Marketing at Cumulus and President of Westwood pegs her target bonus for all of 2018 at $500,000. She’s also now eligible for an “additional annual bonus” at a target amount of 20% of her base salary, and she could also be awarded stock options or restricted shares “commensurate with her role.” Grimes was one of CEO Mary Berner’s first outside hires, in late 2015. Like Berner, she’d been an exec at the Readers Digest Association, and later President/COO of Clear Channel Outdoor North America. Immediately before her recruitment at Cumulus, she ran her own JOTT LLC strategic advisory company, for companies in media, tech and entertainment.

IMHO, that SUCKS. I'm sorry, but that $50k she's getting could pay to keep on 2 employees in the trenches. But no, Cumulus would rather pay the top dogs. I hope they go totally belly up.

She's getting less money that any other person who has held that job, all of whom were men.

gr8oldies said:

You don't get top dogs to work for you if you don't pay. She's ultimately going to bring in more money that 2 random $25,000 a year DJS.

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Yeah, but a $50k raise??!!!! AND they put in for bankruptcy protection? That's nuts.

AMRocks said:

Yeah, but a $50k raise??!!!! AND they put in for bankruptcy protection? That's nuts.

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Typically someone with the title of President gets offered lots of stock options when they sign on. Stock options for a company in bankruptcy are worthless. I imagine this raise is to replace those now worthless options. It's only $50K. It's not going to bankrupt the company

I have heard of senior execs at non-profits making a whole lot more
(which is REALLY a crock).

No one in non-profit ever took a vow of poverty. If they are attracting millions of dollars, they need to be able to become members of the same clubs.

It happens in other industries too, not just broadcasting. I used to run a retail message board and still follow it. You'd be surprised how many executives in retail gets raises and bonuses despite hundreds of store closings and layoffs.