Blockbuster CEO Out

Blockbuster (BBI Quote) settled a pay dispute with CEO John Antioco by forging a deal that calls for his departure by year-end.

The struggling Dallas-based video rental chain said it will pay Antioco a $3 million bonus for 2006.

Antioco had said his contract calls for him to get $7.6 million in bonuses for his work last year, when revenue dropped 3.5% from a year ago as the company closed stores. But the board told Antioco it would pay him just $2.3 million, citing its right to exercise "negative discretion."

The dispute ended Tuesday with an agreement under which Antioco will get a compromise bonus figure and leave by the end of 2007. He'll also get $5 million in severance by year-end -- down from the $13.5 million he was due at termination under his previous contract. ...