Isle of Capri Casinos, Inc. President and Chief Executive Officer Virginia McDowell could receive up to 857,143 shares of the company's stock if she's able to boost shareholder returns and the gambling firm's stock price over the next three years.
The restricted stock options would be worth more than $5 million at today's stock price of $6.08.
McDowell was awarded 545,455 in restricted stock options Oct. 24, according to the filing with the U.S. Security and Exchange Commission.
According to the filing, the number of shares she will be awarded will be determined at the end of the measurement period Oct. 23, 2012 through April 26, 2015, and will be based on the average of the closing market prices of the company's common stock for the 90-day period ending on April 26, 2015.
The award also is contingent upon the company achieving "a threshold level of total shareholder return over the measurement period relative to certain other regional
gaming companies."
If the "threshold level" is achieved, she would receive 187,500 shares (worth $1.14 million at the Isle's current stock price). If the "target level" is reached, 545,455 shares would be awarded and if a "maximum level" is reached, 857,143 shares would be awarded. If the share price does not reach the threshold level, no stock options would be given.
"Assuming that the participant remains employed at the end of the measurement period, 50 percent of the Restricted Stock Units shall become immediately vested as of the last day of the measurement period (April 26, 2015)," according to the SEC filing, "and the remaining 50 percent of the Restricted Stock Units shall become vested one-year thereafter (April 26, 2016)."
The shareholder return threshold, target and maximum levels under the stock incentive plan are to be set by the compensation committee of the Isle Board of Directors, which has until next May to determine.
The Isle of Capri owns the sle of Capri casino in Bettendorf, the Rhythm City casino in Davenport and 13 other gaming and entertainment facilities in Louisiana, Mississippi, Missouri, Iowa, Colorado and Florida.
The City of Davenport is seeking to purchase the Rhythm City operations from the Isle. Davenport city leaders have wanted the Isle to upgrade its Rhythm City facility for several years, and recently announced plans to issue general obligation bonds to buy the riverboat casino for $46 million.
