One month into his new job as CEO of Interpublic Group, Michael Roth has received a raise.
Roth’s annual salary is $1.1 million a year as CEO and co-chairman, according to papers filed with the Securities and Exchange Commission last week. That’s $150,000 more than his previous paycheck, and $100,000 more than what David Bell, his predecessor and co-chairman, makes. IPG has also granted Roth another 450,000 shares of restricted stock, and options to purchase 450,000 more shares of common stock at a strike price of $13.64.
Roth had been working under the terms of a contract he signed in July, when he ascended from board member to chairman. That contract was amended on Jan. 19, to reflect his new title, and again on Thursday, to reflect the raise and the additional shares and options.
The new options were worth nothing on the day of the filing, as IPG’s stock was trading below the strike price, between $13.11 and $13.29. It closed Thursday at $13.16, down 1 percent from the day before on heavier-than-average trading.
As for the new shares of restricted stock, Roth will not be able to access them until February 2007 at the earliest, and then only if IPG meets certain revenue-growth and profit-margin targets in 2005 and 2006, an IPG rep said. For example, during that period, the company must achieve cumulative top-line growth of 4.5 percent and an average operating margin of 10.5 percent, the rep said.
IPG's Roth Gets A Bump In Pay
