Antioco Asks to Stay at Blockbuster

John Antioco, the chairman and ceo of Blockbuster Inc. (Dallas) currently embroiled in a public feud with major shareholder Carl Icahn, has reiterated his desire to remain with the company.

Last month, Icahn, expressing irritation over Blockbuster’s failure to acquire rival Hollywood Entertainment Corp. (Wilsonville, Ore.) and the large judgment against Blockbuster for its unclear new video late-fee policy, demanded that Blockbuster be sold and that Antioco resign.

At the time, Antioco said if he were not re-elected to the company’s board of directors, he would not stay with the company. In his most recent statement, however, he has stated that he would like to stay at Blockbuster, as both chairman and ceo. Under the terms of his contract, were he removed from the chairmanship, he would be entitled to received bonuses, a lump sum cash payment and continued medical benefits.

The company has estimated that Antioco’s payout in the event of a “good reason” termination would be approximately $54 million.

At the time Antioco entered into his employment contract with Blockbuster, in June 2004, he had 35 years of retail experience and had led major retail turnarounds at Circle K Inc. (Phoenix-based convenience store chain) and Taco Bell Corp. (Irvine, Calif.). As a result, the company has noted, he was considered for “nearly every retail ceo job search and had many opportunities for compensation packages equal to or greater than the one offered, and accepted by him, at the company.” So the board’s compensation committee designed his compensation package to achieve a generous equity payout.