Bob Sillerman, the colorful and controversial founder and CEO of publicly-traded EDM conglomerate SFX Entertainment, saw his total compensation double to over $30 million in 2013 thanks to an increase in a variety of option and stock awards.
Sillerman was paid a salary of just $1 by SFX, which owns events like TomorrowLand, Electric Zoo and Disco Donnie Presents, but received new stock awards of $9.9 million and option awards valued at $20.4 million to bring his total compensation to $30.3 million in 2013. This compares with total compensation of $15.1 million in 2012.
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SFX Entertainment was founded in 2012 and has spent the last two years buying up some U.S. and Europe’s biggest promotors in electronic dance to create a conglomerate which will have a huge influence over the fast-growing youth-led genre.
Sillerman’s who is a serial entrepreneur in the music business took SFX Entertainment public last year priced at $13 last October. Since then the stock has tumbled nearly 50% to close at $6.95 on Monday evening meaning the market capitalization of the company has dropped to $536 million from just over $1 billion on the morning of the initial offering. The company lost over $111 million in 2013 as it builds rapidly to take advantage of the fast-evolving EDM business.
In recent months Sillerman’s colorful style has raised concerns with Wall Street particularly after an Instagram video clip went round of the 66-year old cancer survivor grabbing his crotch in a mock hip-hop style and making an obscene gesture at the camera.
He was forced to explain his actions as an internal joke on an investor analyst conference call last month.
Last month the SFX Entertainment was sued by three men who alleged they were “frozen out” by Sillerman in the creation of SFX.
SFX President Tim Crowhurst, who joined the company last June, was paid a pro-rata salary of $175,000 along with $5.5 million in option awards for a total compensation of $5.7 million. Chief Operating Officer Joseph Rascoff, who also joined last June was paid a total compensation of $5.2 million.