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CKX details Sillerman's exit package

May 24, 2010 |  2:45 pm

Robert F.X. Sillerman's exit package from CKX Inc., the parent company of "American Idol" producer 19 Entertainment, includes a cash payout of $3.3 million and a consulting fee of $1 million.

Sillerman, who resigned as chairman and chief executive of CKX earlier this month, is considering making a bid on the company, which he founded in 2005. Michael Ferrel, a former president of CKX, was tapped as acting chief executive and Edward Bleier, an entertainment industry veteran and CKX board member, was named chairman of the board. Sillerman is its largest shareholder, with a 20% stake in the company.

In March, CKX confirmed that it has had talks about selling the company. A potential buyer is One Equity Partners, which is the private-equity arm of JP Morgan Chase. Allen Shapiro, president and chief executive of Mosaic Media Group, is involved in that effort as well.

As part of his deal, Sillerman will also be reimbursed $25,000 a month to help him cover the costs for new office space, a car and a driver and an administrative assistant. Unless Sillerman is planning to relocate from New York City to the middle of nowhere, that money may not go too far. Good assistants don't come cheap. Sillerman is also getting almost $100,000 for unused vacation time and $75,000 to cover his health insurance costs over the next three years.

Besides 19 Entertainment, which produces "American Idol" and "So You Think You Can Dance" for Fox, CKX has a management and events business and also has a majority stake in Elvis Presley's Graceland mansion and an 80% interest in licensing rights to the name and image of Muhammad Ali.

Sillerman will continue to get as many as four tickets for up to 10 CKX events annually.

-- Joe Flint