Newly-solo Lionsgate has extended longtime CEO Jon Feltheimer’s contract for another two years through July 31, 2031.
On April 13, Lionsgate’s compensation committee approved a new employment agreement with the studio head to keep him as CEO for another two years, the studio said in a Securities and Exchange Commission filing on Wednesday.
Feltheimer has served as CEO of the Hollywood studio since March 2000 alongside vice chairman Michael Burns, and that followed a nine-year run at Sony Pictures where he worked on popular shows like Mad About You, The Nanny, Dawsons Creek and Party of Five.
His latest contact calls for Feltheimer’s base salary to remain where it has been for 10 years, at $1.5 million. He will also be granted stock options at between $17 and $22 per-share as part of a management incentive package.
Shares in Lionsgate closed on Wednesday at $10.66, down 43 cents or 4 percent on the day. But the company stock closed at a 52-week high of $11.40 last week. Lionsgate, which recently became a standalone company after splitting off from Starz, is the studio behind John Wick, The Hunger Games and other movie franchises.
The studio has had box office momentum with The Housemaid, and has Michael, the Michael Jackson biopic, opening next week. And on the TV side, Lionsgate has successes with The Studio and The Hunting Wives.
Lionsgate is often touted as a likely participant in the current round of industry consolidation. Michael Burns, vice chairman of the studio, in early February told analysts “we think that recognizable world class IP has never been more valuable, and you’re certainly seeing a validation of premium content when you have those well-heeled players pursuing Warner Bros. We don’t know who’s going to end up with that, but we do believe that is the first domino to fall.”
