Bloomberg News

Falcone Stands to Get Harbinger Bonus of Up to $20 Million (1)

December 26, 2013

Harbinger Group CEO Philip Falcone

Philip Falcone, chairman and chief executive officer of Harbinger Group Inc. Photographer: Jacob Kepler/Bloomberg

Philip Falcone, the Harbinger Group Inc. (HRG:US) chairman and chief executive officer who took no pay from the company for at least three years, is eligible for a corporate bonus of $20 million.

The payout for the 2014 fiscal year is tied to corporate performance, according to a regulatory filing today from New York-based Harbinger Group. Falcone also gets a base salary of $500,000 and an individual bonus of as much as $750,000, the company said.

Harbinger “is also negotiating the terms and conditions of an employment agreement with Mr. Falcone and anticipates granting Mr. Falcone an initial equity award,” according to today’s filing. Falcone created Harbinger Group in 2009 after acquiring a majority stake in a predecessor company.

Falcone, 51, is running publicly traded Harbinger Group after reaching a settlement with the U.S. Securities and Exchange Commission that bars him from the hedge-fund industry. Harbinger Group has businesses including insurance, consumer goods and middle-market lending, and plans to acquire more companies over time, according to its website.

Falcone received no salary or bonus from Harbinger Group from 2011 through the 2013 fiscal year, according to a filing this month. He got $50,000 for transportation in the 2013 fiscal year, the document shows. Jamie Tully, a spokesman for Harbinger at Sard Verbinnen & Co., declined to comment today.

Omar Asali, Harbinger Group’s president, received $20.5 million in total compensation for the 12 months ended Sept. 30, according to the filing. That includes $10.1 million in stock awards and an $8 million cash bonus.

Harbinger Group gained 1.6 percent to $11.81 at 4:15 p.m. in New York. That compares with $8.57 on Aug. 28, the day before Harbinger Group filed for an initial public offering of its Fidelity & Guaranty Life insurer.

To contact the reporter on this story: Zachary Tracer in New York at ztracer1@bloomberg.net

To contact the editor responsible for this story: Dan Kraut at dkraut2@bloomberg.net


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Companies Mentioned

  • HRG
    (Harbinger Group Inc)
    • $13.38 USD
    • 0.37
    • 2.77%
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