The CEO of Time Warner Cable Inc. received compensation worth $17.3 million in 2010, an increase of 10 percent from the year before, as the country's second-largest cable company lost cable TV subscribers but gained high-speed Internet customers.
Glenn Britt, 61, took home a salary of $1.25 million, up 25 percent from $1 million in 2009, and a performance-based bonus that rose 33 percent to $8.3 million.
He received stock valued at $3.1 million on the day it was granted _ an increase of 31 percent over what he got in 2009 _ as well as options valued at $4.4 million, which marks a decrease of 26 percent year over year. Britt's 2009 option award included a $2 million stock option for renewing his employment contract through 2012.
Britt also received other compensation valued at $296,880, up 12 percent from 2009. That included $192,734 for personal use of a company plane and $40,250 in reimbursements for financial services.
The Associated Press formula calculates an executive's total compensation during the last fiscal year by adding salary, bonuses, perks, above-market interest the company pays on deferred compensation and the estimated value of stock and stock options awarded during the year. The AP formula does not count changes in the present value of pension benefits. That makes the AP total slightly different in most cases from the total reported by companies to the Securities and Exchange Commission.
The value that a company assigned to an executive's stock and option awards for 2010 was the present value of what the company expected the awards to be worth to the executive over time. Companies use one of several formulas to calculate that value. However, the number is just an estimate, and what an executive ultimately receives will depend on the performance of the company's stock in the years after the awards are granted. Most stock compensation programs require an executive to wait a specified amount of time to receive shares or exercise options.
During its first full year apart from Time Warner Inc., from which it split in March 2009, Time Warner Cable shed 454,000 residential cable TV subscribers but gained 475,000 residential high-speed data subscribers and 40,000 residential digital phone subscribers.
While the New York-based cable company's subscriber numbers could show that the popularity of watching TV on websites like Hulu and Netflix is starting to cut into cable TV's hold on consumers, when pressed in January to comment on so-called cord-cutting Britt questioned the sustainability of the Netflix model. He said Netflix and its peers are essentially acting as extra middle men between the companies that create entertainment and those that deliver it.
Netflix investors feel differently: The company's stock tripled in 2010, and the company currently has a market value of $12.7 billion.
For all of last year, New York-based Time Warner Cable earned $1.3 billion on $18.9 billion in revenue, up from a profit of $1.1 billion on $17.9 billion in revenue in 2009.
The company's stock climbed nearly 60 percent during the year, ending 2010 at $66.03.