PGA Tour Commissioner Tim Finchem earned $11.2 million in 2014, more than double the $4.8 million he made in 2013, largely because of a payout tied to a tour incentive plan, according to the tour’s newly available 2014 tax return.
The return was filed in mid-November with the Internal Revenue Service.
Finchem’s 2014 compensation includes a $3.7 million long-term incentive plan lump-sum payment. Finchem did not receive a similar award in 2013, and he won’t receive one in 2015 or in 2016 because of how the plan is structured.
The plan operates with three-year terms, and payments typically are paid out annually over the subsequent three-year period. That means payments from the plan’s 2011-13 term were paid out starting in 2014 and would continue in 2015 and 2016.
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PGA Tour Commissioner Tim Finchem received a lump-sum incentive plan payment of $3.7M in 2014.
Photo by: GETTY IMAGES
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However, the three-year payout period does not apply to executives age 65 and older. Instead, payments are made in a lump sum. For Finchem, who turned 65 in 2012, that meant in 2014 he received at once the three years’ worth of incentive payments that normally would be paid in 2014, 2015 and 2016, said Ron Price, chief financial officer of the PGA Tour.
Price said the total amount of compensation for Finchem that will be reported in the tour’s 2015 tax filing will be $5.4 million.
According to the tour’s filing for 2014, the tour employed 763 people in 2014, compared with 744 in 2013. In addition, the tour reported total revenue of $1.129 billion for 2014, up from $1.075 billion in 2013. Total expenses in 2014 reached $1.093 billion compared with $1.040 billion in 2013. Net revenue, according to the return, was $36 million in 2014 compared with $34 million in 2013.
The tour received $383 million in television rights revenue in 2014 compared with $365 million in 2013, with 2013 being the first year of the tour’s current deals with CBS and NBC that run through 2021. Total sponsorship revenue climbed to $142 million in 2014 compared with $129 million in 2013, as the tour kept a full sponsor roster and increased its number of longer-term deals.
Compensation for other tour executives was also reported in the filing.
PGA Tour Deputy Commissioner Jay Monahan earned almost $1.7 million in 2014 compared with $897,234 in 2013, according to the filing. Monahan was named deputy commissioner in 2014. Ty Votaw, who was named chief marketing officer in 2014, received $1.67 million in compensation in 2014, compared with $978,058 in 2013.
Charles Zink, co-chief operating officer of the tour, earned $3.6 million in total compensation in 2014, up from $1.6 million in 2013, while Tom Wade, chief commercial officer, received $2.9 million compared with $1.9 million in 2013. The compensation for both Zink and Wade, however, included lump-sum payments from the tour’s long-term incentive plan, as was the case with Finchem.
