Blockbuster Inc. (Dallas) announced that the in-home movies and game entertainment provider and John Antioco, Blockbuster chairman and ceo, have entered into an amended and restated employment agreement that lays out terms for Antioco to leave the company by the end of 2007.
“I am pleased that we were able to reach this agreement,” said Antioco. “This revised employment agreement allows for management continuity and ample opportunity for an orderly succession by the end of the year. In the meantime, the board of directors, our management team and I remain focused on continuing to improve the business.”
Under the agreement, Antioco will receive a 2006 bonus of $3.05 million, which reflects a compromise between the $2.28 million bonus previously conditionally offered by the board and $7.65 million, which is the amount Antioco was entitled to receive under his previous employment agreement. At the end of his employment, Antioco will also receive a lump sum payment of $4.98 million.
According to The New York Times, Antioco was supposed to stay at his job until 2009. The agreement ends a two-year battle between the ceo and the company board of directors involving issues over management styles and compensation packages.
In addition to approving the employment deal, the company’s board of directors voted to recommend that Blockbuster's stockholders approve at its annual meeting an amendment to Blockbuster's certificate of incorporation to eliminate the classification of the board of directors and to provide for the annual election of all directors. The board believes that the de-classification of the board is consistent with best corporate governance practices.
Blockbuster operates more than 8000 stores throughout the Americas, Europe, Asia and Australia.