UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 19, 2010
LAMAR ADVERTISING COMPANY
(Exact Name of Registrant as Specified in Charter)
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Delaware
(State or Other
Jurisdiction of Incorporation)
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0-30242
(Commission File Number)
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72-1449411
(IRS Employer Identification No.) |
5551 Corporate Blvd.
Baton Rouge, LA 70808
(Address of Principal Executive Offices) (Zip Code)
(225) 926-1000
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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| Item 5.02. |
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Departure of Directors or Certain Officers; Election of Directors;
Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. |
Executive Compensation
On March 19, 2010, the Compensation Committee of the Board of Directors of Lamar Advertising
Company (the “Company”) set the base salaries and approved both a performance-based cash and equity
bonus programs and a separate discretionary cash bonus program for the Company’s executive officers
for fiscal 2010.
The following table sets forth the 2010 base salary for each of the Company’s executive officers,
which was unchanged from 2009:
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| Executive Officer |
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2010 Base Salary |
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Kevin P. Reilly, Jr. |
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$ |
700,000 |
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President, Chief Executive Officer and Chairman |
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Sean E. Reilly |
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$ |
500,000 |
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Chief Operating Officer and Vice President |
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Keith A. Istre |
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$ |
450,000 |
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Chief Financial Officer and Treasurer |
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Under the performance-based bonus programs, each of the Company’s executive officers has an
opportunity to earn a cash bonus and an award of unrestricted shares of the Company’s Class A
Common Stock (the “Common Stock”). The amount of cash bonus and the number of unrestricted shares
of Common Stock earned by each executive officer will be determined according to formulas set by
the Compensation Committee at the meeting. The formulas are based upon levels of the Company’s pro
forma net revenue growth and pro forma EBITDA growth in fiscal 2010 over fiscal 2009. Under the
formulas, each executive officer may earn up to a maximum of 200% of his target cash bonus and 100%
of his target equity award. Any bonus under these programs will be paid and issued when the
Compensation Committee certifies (after the close of fiscal 2010) the extent to which the
enumerated performance criteria have been satisfied.
The following table sets forth the 2010 target cash and equity bonuses for each of the Company’s
executive officers, which assumes 100% achievement of each performance metric:
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2010 Target |
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2010 Target Unrestricted |
| Executive Officer |
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Cash Bonus |
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Stock Grant |
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Kevin P. Reilly, Jr. |
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$ |
400,000 |
(1) |
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44,000 shares |
President, Chief Executive Officer and Chairman |
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Sean E. Reilly |
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$ |
250,000 |
(2) |
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44,000 shares |
Chief Operating Officer and Vice President |
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Keith A. Istre |
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$ |
250,000 |
(3) |
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26,000 shares |
Chief Financial Officer and Treasurer |
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| (1) |
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Mr. Kevin P. Reilly, Jr. may earn up to 200% of his target bonus, for a total cash bonus
opportunity of up to $800,000, upon the attainment of enumerated performance goals that
exceed target under the bonus program. |
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| (2) |
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Mr. Sean E. Reilly may earn up to 200% of his target bonus, for a total cash bonus
opportunity of up to $500,000, upon the attainment of enumerated performance goals that
exceed target under the bonus program. |
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| (3) |
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Mr. Keith A. Istre may earn up to 200% of his target bonus, for a total cash bonus
opportunity of up to $500,000, upon the attainment of enumerated performance goals that
exceed target under the bonus program. |
In addition, the Compensation Committee also adopted a discretionary bonus program for fiscal
2010. Under this program, the Committee may grant an additional cash bonus to any executive
officer in an amount up to 50% of such executive officers’ base salary. Such bonus (if any) will
be awarded solely at the discretion of the Compensation Committee based on an evaluation of each
executive officer’s respective 2010 performance.