USA Networks Pays President $48 Million

USA Networks Inc. paid President Barry Baker $48.1 million in his first year on the job in 1999, when he was brought on to help Chairman Barry Diller expand the company in electronic commerce and television. Most of the payment came from options that are valued at $40.6 million if USA Networks stock rises 5% a year until the options expire in 2009, according to a proxy filed Thursday with the Securities and Exchange Commission. The 47-year-old Baker joined USA Networks last February after overseeing Sinclair Broadcast Group Inc.’s radio and TV stations. In addition to the options package, Baker received $602,000 in salary, a $1.23-million bonus, $5.52 million of restricted stock and a housing allowance of $105,000. Diller received a salary of $500,000. He didn’t get a bonus. He made $21.8 million last year by exercising options for 1.2 million shares. He held exercisable options on about 40.4 million shares at the end of the year, valued at about $863.3 million, according to the proxy. He also holds options that can’t be exercised yet to buy another 9.5 million shares, valued at $170.7 million. USA’s shares surged 67% last year.