Gallery Board, Executives Receive 1M in Stock Options17 Jun, 2008 By: Erik Gruenwedel
Its stock is currently worth .02 of a cent, but that didn't stop Movie Gallery Inc. from awarding its new board and senior executives millions in stock options.
Dothan, Ala.-based Gallery, which last month emerged from bankruptcy protection, issued 1.05 million in options worth $10.5 million ($10 per share) that vest in three annual installments beginning June 11, 2009, according to a regulatory filing.
President and CEO Clarence “Gaby” Gabriel, COO and president of retail operations Sherif Mityas, and board chairman Neil Subin each received 233,665 in common stock options.
Board members Bob Fiorella, Thomas McGrath, Steven Scheiwe, Richard Shorten and Mark Holliday, as well as co-founder, former president and former CEO Joe Malugen, each received 58,416 in options.
Separately, COO Mityas, who joined Gallery June 11, received a signing bonus equal to his $450,000 annual salary. The former aerodynamic engineer is also eligible to receive performance bonuses worth up to 100% of his salary, plus additional stock options.
If Mityas is terminated without cause, he is eligible to receive two times his annual salary ($900,000) payable in monthly installments over two years.
Gallery, unlike Blockbuster Inc., has not instituted a non-binding provision that allows shareholders to weigh in on executive pay.
The chain reported a consolidated net loss of nearly $50 million on revenue of more than $151 million for the period from March 10 to April 6.