Saturday, 30 April 2016
Last updated 2 hours ago
Jul 22 2009 | 9:08am ET
Not bad for a day’s work: Fortress Investment Group’s new CEO Daniel Mudd will kick start his tenure at the massive alternative investment shop with a nice little bonus.
According to a Securities and Exchange Commission filing, Fortress will pay Mudd an annual base salary of $200,000 for the remainder of this year and in 2010. After 2010, Mudd’s base salary will be subject to annual adjustments based on the recommendations of a committee composed of Fortress principals and subject to the approval of the compensation committee of the firm’s board of directors.
But that’s just chump change. Mudd will receive a cash bonus of $1.3 million for 2009, payable on his start date. In addition, Mudd is entitled to receive a cash bonus of $1.8 million for 2010, subject to either his continued employment in May 2011 or the earlier termination of his employment by Fortress without “cause” or by Mudd for “good reason” prior to the payment date. After 2010, Mr. Mudd will be eligible to receive a discretionary annual performance bonus as determined by the principals committee and the compensation committee.
Also, effective on Aug. 11, Mudd will receive $25 million worth of Fortress restricted stock. One-half of the grant will consist of dividend-paying restricted stock units. The stock award will vest in equal annual installments on each of the first eight anniversaries of the start date, subject to Mudd’s continued employment on each such anniversary.