Dive Brief:
- Audio giant iHeartMedia promoted its executive vice president and deputy CFO Michael McGuinness to its top financial seat, effective Jan. 1, according to a Monday securities filing.
- With the move, McGuinness will succeed Richard Bressler as the company’s finance chief, with Bressler currently serving in the combined role of CFO, chief operating officer, and president. A Time Warner and Viacom alum, Bressler joined the New York-based podcast publisher in July 2013 as its CFO and president, and took on additional COO responsibilities in February 2015.
- Bressler will continue to serve in his COO and president roles, and McGuinness will report to Bressler upon assuming the CFO chair, the owner of iHeartRadio — which publishes and hosts podcasts including Stuff You Should Know — said in the filing with the Securities and Exchange Commission.
Dive Insight:
The CFO swap bucks a growing trend of companies combining their CFO and COO roles, with Bressler relinquishing his financial responsibilities after 12 years. Salesforce and payment processor PayPal are among the companies which have announced such dual roles this year, CFO Dive previously reported.
While the roles are often complementary, their combination depends on the personalities of the executives involved and the culture of the company, Scott Roe — who serves as CFO and COO for Coach and Kate Spade owner Tapestry — said during a recent panel discussion during MIT Sloan’s CFO Summit on Nov. 20.
McGuinness joined iHeartMedia in September 2019, serving in his role as EVP of finance and deputy CFO. Prior to iHeartMedia, he served as SVP, chief accounting officer and treasurer for manufacturing firm Hain Celestial Group, and served a seven-year span at job search platform Monster, according to his LinkedIn profile. He began his career as a senior auditor at Arthur Andersen.
McGuinness as CFO is set to receive an annual base salary of $1.2 million, effective Jan. 1, according to the filing. The company also increased his annual target bonus opportunity to 150% of his salary, and tweaked his long-term annual incentive award to a target grant date fair value of $1.5 million, according to an amended employment agreement.
The CFO swap comes as the media company remains on track to generate net cost savings of $150 million by year’s end, CEO Robert Pittman said during its most recent earnings call. The business is also targeting an additional $50 million of incremental annual savings starting in 2026, Pittman said according to a transcript.
“As a reminder, we run the company with a relentless focus on maximizing the efficiency of our operating structure, including using new technologies like AI-powered tools and services,” Pittman said.
For its second quarter ended Sept. 30, iHeartMedia reported a GAAP operating loss of $116 million, compared to an operating income of $77 million in the prior year period, according to its earnings release. The company’s loss included a non-cash impairment charge of $209 million related to its licenses with the Federal Communications Commission.
Company executives also highlighted continued strong quarterly results in its digital audio group segment, which includes its podcasting business — with the company running what it believes to be “the most profitable podcasting business in the United States,” Pittman said during the earnings call.
The company’s podcasting revenue jumped by 22% to reach $140 million, while its adjusted EBITDA margin rose to just over 38% compared to about 33% for the prior year period.
