Lionsgate Extends CEO Jon Feltheimer’s Contract Until 2029 Amid Splitting Plans

Lionsgate has approved a five-year employment agreement with its chief executive, Jon Feltheimer, running through July 31, 2029.

The latest deal, which supersedes his previous contract from 2022, includes an annual base salary of $1.5 million and a target bonus of $7.5 million starting in fiscal year 2025. The maximum bonus is 200% of the target, which could amount to $14 million, according to an SEC filing.

Any portion of the bonus exceeding $1.5 million for a particular year may be paid to him in the form of fully vested company common shares.

In addition to his annual bonus, the employment agreement includes annual equity-based grants for FY 2025-2029. The aggregate target grant date value for these will be $10 million, with the final value determined by the board’s compensation committee each year. This decision will be based on the company’s financial performance for the prior year against targets agreed upon by the board and Feltheimer.

The agreement also includes “reasonable” club fees and limited use of corporate aircraft.

Lionsgate is currently in the process of splitting into two publicly traded companies: Lionsgate Studios and Starz. The separation began with Lionsgate Studios merging with a SPAC and spinning off earlier this year. The full split is anticipated to be completed by the end of 2024.

Like all media companies, Lionsgate has been affected by the Hollywood strikes and their aftermath. However, the company continues to benefit from strong library revenues, solid intellectual property, and a focus on delivering a stream of content to third parties.