[FONT=Verdana, Arial, Helvetica, sans-serif]Arad Gets a Bonus for Ghost Rider, Spider-Man 3[/FONT]
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New Marvel 'Creative Consultant' Position [/FONT]
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June 6th 2006 02:51am | Posted by: Michael Stevens, HNR Senior Editor[/FONT]
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According to a press release, Marvel has announced it has authorized up to $100 million in new stock 'buybacks' just five days after former company honcho Avi Arad cashed out for $60 million on his way out the door as Marvel studio chief.
Marvel may now need to 'jump' the company's share price, which despite a recent spike is down more than 10% compared with a year ago.
The authorization comes as Marvel announces it spent $100 million in May on buybacks, bringing total buybacks to date to $600 million. $100 million is thought to be the Arad shares the company chose to absorb.
Concurrent with the buyback on Monday, Marvel Entertainment CEO Isaac Perlmutter bought approximately 6 million shares at his option price of just over $2.
Marvel is in need of cash in a year with relatively few new films in release and with Arad's move abruptly forcing the company to absorb $60 million in shares.
The buyback also dispels rumors that Arad's departure is part of a larger plan to put Marvel up for sale. Buying back stock at a time when a company is in material sales discussions is a violation of SEC rules.
Arad exited Marvel last week to become a producer and immediately sold more than 3 million shares several days after shares had fully vested.
Marvel on Monday also released Arad's new employment agreement, where he will serve as executive producer on Spider-Man 3 and potential sequels, but has to work out a separate agreement with Sony for those services, which include serving as liaison between the studio and Marvel.
For his work as a 'creative consultant' Arad will get a bonus based on box office performance for either Ghost Rider or Spider-Man 3 in 2007.
Marvel also chose not to include the compensation Arad will receive as a producer on developing Iron Man and The Incredible Hulk features.[/FONT]
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Source: Marvel[/FONT]
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In: General Movie News[/FONT]
Looks like Avi did ok.