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): December 11, 2008
EMMIS COMMUNICATIONS CORPORATION
(Exact name of registrant as specified in its
charter)
INDIANA
(State of incorporation or organization)
0-23264
(Commission file number)
35-1542018
(I.R.S. Employer
Identification No.)
ONE EMMIS PLAZA
40 MONUMENT CIRCLE
SUITE 700
INDIANAPOLIS, INDIANA 46204
(Address of principal executive offices)
(317) 266-0100
(Registrants Telephone Number,
Including Area Code)
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 (see General
Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
ITEM 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers. |
Effective
December 15, 2008, we entered into a new employment agreement with Patrick Walsh, who
will serve as Chief Financial Officer and Chief Operating Officer of the Emmis Communications
Corporation (the company), extending his employment through September 3, 2011. Additionally, our
board of directors elected Mr. Walsh as a director of the company for a term expiring at the annual
meeting of shareholders in 2009. Mr. Walsh, 41, has served as Executive Vice President and Chief
Financial Officer of the company since September 4, 2006, previously serving as Senior Vice
President and CFO of iBiquity Digital Corporation, the developer and licenser of HD Radio®
technology. Prior to joining iBiquity, Mr. Walsh was a management consultant for McKinsey &
Company, and served in various management positions at General Motors Acceptance Corporation and
Deloitte & Touche LLP. He earned a Bachelor of Business Administration degree in accounting and
finance from the University of Michigan and an MBA from Harvard Business School.
Under the terms of his new employment agreement, Mr. Walshs annual base compensation for the
first year of the employment agreement is $540,000 and is $556,200 for the remainder of the term.
Mr. Walshs annual incentive compensation targets for fiscal years 2010, 2011, and 2012 are 100% of
his base compensation. In the event that Mr. Walshs employment terminates upon expiration of the
employment agreement, Mr. Walshs annual incentive compensation for fiscal year 2012 will be
pro-rated based upon the 7 months he will have been employed during the 2012 fiscal year. The
award of annual incentive compensation is to be based upon achievement of certain performance goals
to be determined each year by our compensation committee and the company retains the right to pay
any annual incentive compensation in cash or shares of our common stock. For the current fiscal
year, Mr. Walshs annual incentive compensation target will be $400,000, with $200,000 to be earned
based upon the performance goals established in the spring under his prior contract, $100,000 to be
earned depending upon whether the company meets certain radio station operating income targets
during the fourth quarter, and the final $100,000 to be earned in the discretion of the
compensation committee based upon Mr. Walshs performance in transitioning to his new position. On
December 15, 2008, Mr. Walsh received an option to acquire 250,000 shares of our common stock. In
the event that Mr. Walsh continues to be employed as of September 3, 2009, his existing completion
bonus of 20,000 shares of our common stock and $200,000 shall be awarded and paid as previously
provided. Mr. Walsh is also scheduled to receive a completion bonus upon the expiration of the
agreement equal to at least 100% of his annual base compensation, with additional targets
(inclusive of the minimum completion bonus amount) of $750,000 and $1,100,000 based upon certain
levels of total shareholder return set forth in the employment agreement. Mr. Walsh will receive
an automobile allowance of $1,000 per month and will be reimbursed for up to $5,000 per year in
premiums for life and disability insurance and retains the right to participate in all of our
employee benefit plans for which he is otherwise eligible. The agreement remains subject to
termination by our board of directors for cause (as defined in the agreement), and by Mr. Walsh for
good reason (as defined in the agreement) upon written notice. Mr. Walsh is entitled to certain
termination benefits upon disability or death, and certain severance benefits.
ITEM 5.03. Amendment of Articles of Incorporation or Bylaws; Change in Fiscal Year.
The Board of Directors of Emmis Communications Corporation (the company) amended Section
3.2(a) of the Amended and Restated Code of By-Laws of the company to increase the number of
directors from seven to eight. The amendment was effective December 15, 2008.
ITEM 5.05. Amendment to the Registrants Code of Ethics, or Waiver of a Provision of the Code of
Ethics.
On December 11, 2008, the Board of Directors of Emmis Communications Corporation granted a
waiver of the Companys Code of Ethics to permit Jeffrey H. Smulyan to sell up to 18,000 of his
shares of Class A common stock in one or more private sales in order for him to take a tax loss on
the shares before the end of the year. The Companys Code of Ethics prohibits all purchases and
sales of Company securities when the trading window is closed under our Securities Trading Policy
(other than pursuant to a bona fide 10b(5)-1 plan). However, Mr. Smulyan requested permission to
effect one or more private transactions involving persons who would have access to the same
non-public information as Mr. Smulyan in order to ensure that the transaction would not violate
applicable securities laws. Mr. Smulyan indicated that he had neither identified a purchaser nor
definitively determined that he was going to effect a sale at all. He merely requested an advance
waiver. The Board of Directors authorized a waiver of the Code of Ethics to permit such a private
transaction(s) for Mr. Smulyan provided that such purchaser held the shares until the trading
window opened following the release of the Companys November 30, 2008 financial statements. The
waiver also applies to an employee, officer or director, if any, who purchases the shares from Mr.
Smulyan while the trading window is closed.
ITEM 8.01. Other Events.
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