March 10 (Bloomberg) — Cablevision Systems Corp. directors were sued by an investor for wrongfully approving "grossly excessive" compensation for Chairman Charles Dolan and members of his family who serve as executives of the fifth-largest U.S. cable company.
The board of Bethpage, New York-based Cablevision, which includes Dolan's three daughters, approved more than $80 million in compensation for the firm's founder and his son over a three- year period starting in 2010 while the company racked up losses, according to a Delaware Chancery Court lawsuit.
"It is impossible to see the payments as anything but grossly excessive and unfair to the company and its public stockholders," lawyers for Gary Livingston, the shareholder who sued, said in a March 7 complaint filed in Wilmington, Delaware.
The complaint about pay at Cablevision comes as the U.S. Securities and Exchange Commission weighs a proposal to require corporations to disclose how much more their chief executives earn than rank-and-file employees. The pay-ratio disclosures are mandated by a provision in the Dodd-Frank Act.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
