In a surprising turn of events, Lionsgate CEO Jon Feltheimer’s compensation has rebounded to its prior levels in fiscal 2023, reaching an astounding $21.5 million. This marks a significant increase from the previous year, where the executive’s pay totaled only $5.6 million, a sharp decline from the impressive $19.2 million he received in fiscal 2021. The company disclosed these figures as part of a proxy filing with the SEC, shedding light on the substantial compensation packages awarded to top executives.
Rising Profits Lead to Increased Pay for Vice Chair and CFO
Vice Chair Michael Burns also experienced a substantial increase in total pay, rising to $10.1 million in fiscal 2023, compared to $4.4 million in the previous year. CFO Jimmy Barge saw a similar trend, with his total compensation reaching $10.9 million, a significant increase from $6.45 million. These figures highlight the company’s success and its acknowledgment of key individuals instrumental in driving its growth and profitability.
The proxy statement not only revealed the compensation figures but also included important dates for Lionsgate’s annual shareholder meeting as well as a special shareholder meeting. On November 28, shareholders will gather to cast votes on executive compensation and to elect members of the board of directors, a crucial event for shareholders to voice their opinions on the company’s direction and management.
Additionally, Lionsgate is poised to separate its studio business from Starz, a move that has been under careful consideration for some time. However, due to external circumstances such as the WGA strike and the company’s acquisition of eOne, the split was postponed in August of the previous year. The separation is now expected to take effect in the first quarter of 2024, pending approval from the shareholders.
During the company’s most recent quarterly earnings call with Wall Street analysts, Feltheimer emphasized their commitment to the separation, stating that the delay was primarily due to the impact of the eOne acquisition on regulatory approvals, uncertainties surrounding the strike, and the company’s efforts to establish an efficient capital structure in a disruptive marketplace. This strategic move aims to streamline operations and allow both Lionsgate and Starz to focus on their respective strengths in the entertainment industry.
It is worth noting that in August, Lionsgate confirmed its acquisition of eOne from Hasbro for a staggering $500 million. This acquisition demonstrates the company’s strategic vision and its determination to expand its footprint in the ever-evolving entertainment landscape. By integrating eOne into its operations, Lionsgate aims to tap into new markets and leverage eOne’s extensive content library to enhance its offerings.
The compensation of Lionsgate executives has experienced a dramatic rebound in fiscal 2023, surpassing previous levels. This notable increase in pay for CEO Jon Feltheimer, Vice Chair Michael Burns, and CFO Jimmy Barge highlights their invaluable contributions to the company’s success. Furthermore, Lionsgate’s plans to separate its studio business from Starz and its recent acquisition of eOne demonstrate the company’s commitment to strategic growth and its relentless pursuit of excellence in the entertainment industry. With these developments, Lionsgate is well-positioned for continued success in the years to come.