Berkett renouncing Virgin Media post for $86.8 million

Northern, WI 03/09/2013 (avauncer) – Neil Berkett, the Chief Executive Officer of Virgin Media Inc (NASDAQ:VMED) is currently overseeing its takeover by Liberty Global Inc (NASDAQ:LBTYA). Once the deal is complete and he leaves his post, he will be $86.8 million richer. Severance pay from stock and cash will account for $19.6 million as per Liberty Global’s regulatory filing. The remainder $67.2 million is from other rewards and options that come from Neil Berkett’s long-tern incentive plan said a Virgin Media spokesperson Lulu Bridges.  The former banker who is a native New Zealander has been the Virgin Media Inc (NASDAQ:VMED) CEO since 2008 and had announced that he will be giving up his role once Liberty Global Inc (NASDAQ:LBTYA) agrees to buy out the company.

Excellent leader

Virgin Media Inc (NASDAQ:VMED) is on the lookout for a replacement. The company had thrived under Berkett and its stock had tripled. Billionaire John Malone who controls Liberty Global Inc (NASDAQ:LBTYA) will be buying-out Virgin Media for $16 billion and will be expanding into the biggest TV –market in Europe. It is in competition with Netflix, Inc (NASDAQ:NFLX), who offer streaming services and a much bigger adversary, British Sky Broadcasting Group plc (LON:BSY). As of December 31 2012, Malone owned 36 percent of Liberty Global’s shares.

Taking the future as it comes

Virgin Media Inc (NASDAQ:VMED) had made a successful comeback after emerging from bankruptcy in 2003 and the merger with Liberty Global discussion took place in August and it was only in December that the two companies signed a confidentiality agreement. Berkett had intended to leave the CEO post well before the Liberty Global Inc (NASDAQ:LBTYA) agreement was reached and he had informed the board about his intentions. He is not sure about taking up any executive post in the near future and is not keen on looking for a new job in the media industry and said that he hadn’t really given the future much thought.

Shares of Virgin Media Inc (NASDAQ:VMED) went up by 0.65% to close at $47.70

Shares of Liberty Global Inc (NASDAQ:LBTYA) went up by1.0% to close at $71.74

Shares of British Sky Broadcasting Group plc (LON:BSY) went down by 0.47% to close at £862.40

Shares of Netflix, Inc (NASDAQ:NFLX) went up by 1.73% to close at $184.70