DirecTV has created a special committee to search for a permanent replacement for former CEO Chase Carey, and has carved out a $1 million incentive payment for interim CEO Larry Hunter.
According to a Securities and Exchange Commission filing late Monday, DirecTV said it formed the special committee on Aug. 5 consisting of chairman John Malone and non-employee directors Neil Austrian and Charles Lee. According to the document, because of the work and time involved in the process, each member of the special committee will be entitled to a one-time $50,000 payment in addition to his normal compensation. The award will be made upon the selection of a new president and CEO and the committee members may select to have some or all of the fee donated to charity.
In a separate move, DirecTV said it created the "Interim Chief Executive Officer Short-Term Cash Incentive Plan," in the maximum amount of $1 million and subject to the discretion of the board of directors. The incentive plan was created to recognize Hunter's performance as interim-CEO in addition to his other duties as executive vice president of legal, human resources and administration and will be payable once the selection of a permanent CEO is made; the Board formally ceases the search or Feb. 1, 2010; whichever occurs earliest.
Carey announced in June his decision to leave DirecTV after six years at the helm. He became president and chief operating officer of News Corp. - his old employer - on July 1.
DirecTV reported strong second-quarter results last week, adding 224,000 net new subscribers.
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