Drahi’s Ultimate Compensation Package: $43 Billion+
The Wall Street Journal has been tracking Drahi’s dreams of being one of the world’s most richly compensated CEOs, perhaps the richest ever.
Even the most casual investor couldn’t turn a blind eye to Drahi’s original plan for personal compensation, which would have given him $817 million in compensation over five years simply by paying him a management fee of 0.2% of revenues plus a performance fee of 5% of increased cash flows, which was child’s play to accomplish with additional acquisitions or rate hikes. One minority shareholder balked, complaining this kind of compensation was “too easy to achieve.”
Plan “B” could redefine CEO greed for years to come. In addition, to Drahi’s outstanding stock options, worth $64,757,550 million at the current stock price, Drahi would keep his 59% ownership of Altice, a stake currently worth $22,370,790,000 today. If Drahi manages to triple the share price, his net worth automatically increases another $43 billion dollars. But Drahi is also asking for a bonus: another 30 million shares of Altice stock to be awarded to him automatically. The first 10 million shares automatically are his if he is still alive and breathing at Altice in 2020. Another 10 million shares show up if the share prices doubles by then, and yet another 10 million go into his portfolio if the share price triples by the end of 2021. That represents another €1.1 billion on top of the $43 billion.
That may be why some in the French press have dubbed Drahi the “Big, Bad Wolf.” Les Echoes notes Wall Street has never particularly minded this kind of wolf, as long as it confined itself to eating consumers. But Drahi’s desire to also drain his investors is what the newspaper cautions is a “big bad wolf none would have expected.”
Altice Name Change Will Personally Profit Drahi
But then that misses the fact Altice’s trademark is held personally by Drahi and he won’t be offering it for free. Every company owned by Altice will be required to pay unspecified annual royalties to Mr. Drahi starting three years from now, just to license the use of the Altice name.
Drahi the Landlord
Some shareholders are scrutinizing SFR’s (Altice, in France) sudden decision to relocate its corporate headquarters, despite signing a 12-year lease in 2013 for brand new offices in Saint-Denis, priced at $576.90 per square meter. Berjal notes this sudden move doesn’t make any business sense, until one digs a little deeper.
“Patrick Drahi has decided to break this lease to move SFR into a building that belongs to him personally,” Berjal said, adding the move will result in a spectacular rent increase. “The rent is $853.62 per square meter [at Drahi’s property], not to mention the contract termination fees that have to be paid [to the old landlord].” ALL LEGAL.
CIMA feels Drahi isn’t exactly representing the best interests of shareholders, just himself.
Clearly, it is beyond a doubt, that YOUR COMPANY has YOUR INTEREST at heart. Otherwise, how will your owner overcome Gates in worth. Stay tuned for Forbes upcoming Fortune 500 "Richest In The World" list.
Get him up there!!
MAKE HIM PROUD OF YOU!!!
Let me hear ya' say Yo-o-o-o-o-o-o !!!
Why does this reminder me of the song "Smooth Operator."?