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Univision Execs’ Severance Plans Tweaked

May 26, 2006  •  Post A Comment

Univision Communications’ top executives could be entitled to three times their base salary and maximum annual bonus should the country’s leading Spanish-language broadcaster get a new owner or if the executives are dismissed without cause, according to a regulatory filing.

In the filing submitted Friday to the Securities and Exchange Commission, Univision said it tweaked the severance plans of its top executives. The new terms guarantee that if the executives lose their jobs under either scenario they will be paid either (1) three times the total of their base salary and maximum annual bonus or (2) their base salary and maximum bonus through the end of their employment contract, whichever is larger.

The revisions cover Vice Chairman Robert Cahill, President Ray Rodriguez, Chief Financial Officer Andrew Hobson and General Counsel Douglas Kranwinkle.

The changes come as Univision seeks a buyer for the company. Bids are due in June, and the final price is expected to be $12 billion or more. At least two private-equity consortiums are expected to make offers, including one team that includes Univision’s main supplier of television shows, Grupo Televisa.

The new severance package also enables the executives to speed up the vesting of outstanding and unvested stock options and other equity-based compensation immediately upon a change in ownership at Univision.