Chairman Steve Case filed to sell 450,000 shares for about $22.1 million. Vice Chairman Ted Turner will sell 1 million shares for $49 million, and Co-Chief Operating Officer Richard Parsons will sell 700,000 shares for $35 million, according to a filing with the Securities and Exchange Commission. Gains from these sales will be used for personal gains and the funding of charitable efforts, according to company spokesman Ed Adler.
The sales reflect a changing compensation structure for the company's executives. Before America Online and Time Warner officially merged in January, Time Warner executives were awarded cash bonuses merely padded with stock options. Now, the combined company's compensation structure more closely reflects AOL's, which focused on stock incentives rather than cash.
Since the closure of the merger, all AOL Time Warner employees have been granted stock options in the company.
This is the first time Parsons will sell stock in either Time Warner as an independent company or under the new AOL Time Warner, Adler said. Out of the 700,000 shares noted in the filing, 350,000 share have already been sold. He added that Parsons plans to donate $1 million to Albany Law School in New York, his alma mater.
Case sold his shares as part of his regular long-term financing, Adler said. Turner regularly sells shares to fund his charitable contributions.