Live Nation shareholders have voted against chief executive Michael Rapino’s $139m pay package after rejecting executive compensation proposals.
Around 54% voted against the pay plans for the group’s leader and other C-suite executives in a vote earlier this month.
Rapino was slated to earn a $12m cash performance bonus for 2022 and stock awards of $116m for a total compensation of around $139 million for 2022.
However, shareholder advisory groups Institutional Shareholder Services and Glass Lewis both advised Live Nation shareholders to vote against accepting these pay packages. Primary concerns were that the compensation packages were not fully disclosed, with Rapino’s actual compensation being higher. The $139m package outpaced compensation for top execs at other major corporations and was not aligned with long-term performance.
The decision comes after a challenging year for Live Nation, which has been heavily criticised over on-sales, pricing and fees. Earlier this month, Live Nation said it will offer all-in pricing in the US following pressure from President Joe Biden and other lawmakers.
Last July, Rapino signed a five-year contract extension to remain the chief executive of Live Nation.
According to Hollywood Reporter, Rapino’s salary would remain unchanged at $3m per year. However, the annual target cash bonus, based on certain metrics, leapt from $6m to $17m per year. From 2023, he will also be eligible for an annual grant of restricted shares valued at no less than $10m.