Financier Carl Icahn will be paid $275,000 by money-losing telemarketing company GenesisIntermedia Inc. to help it raise cash for acquisitions, the first piece of a compensation package worth more than $74 million, regulatory filings say.
GenesisIntermedia, whose biggest outside shareholder is financier and arms merchant Adnan Khashoggi, last week said it received a "conditional commitment" from Icahn for a $100-million line of credit. His obligation remains "conditional," said the company's 8-K filing with the Securities and Exchange Commission. Icahn must approve terms of any loan.
"I only really make money here if the company makes it," said Icahn in a telephone interview. "I've got to spend a fair amount of time to make these acquisitions happen."
Van Nuys-based Genesis will pay Icahn $275,000 immediately and an additional $900,000 after the company receives a loan, the filing said. Under a two-year consulting contract, Icahn's Riverdale also received the right to purchase 5.5 million shares of Genesis at a 73% discount from Monday's close of $18.60. The options, with an average strike price of $5.09 per share, represent a 20% stake in Genesis, the company said.