Hefner, Leading the Private Playboy, Has Salary Set at $1M

HOLMBY HILLS, Calif. — In a sea of filings with the Security Exchange Commission, founder Hugh Hefner and his team have outlined Playboy's transition to a private company.

Hefner, according to one of the numerous filings, will agree to an annual base salary of $1 million and entitled to his permanent residence at the Playboy Mansion. Hefner's salary in 2009, the last year recorded, also was $1 million.

The filings with regulators include all kinds of information on the company in presentations to board members on company divisions, including pay per view, and investor institutions.

The filings also include letters to shareholders and the formal offer to purchase statements.

Hefner’s plan remains a good one for the Playboy founder, who has been its chief creative officer ever since its beginning in 1953. Hefner is 84.

“If Mr. Hefner’s employment is terminated for cause or Mr. Hefner resigns for good reason, then during the remainder of his life, he may continue to reside in the Playboy Mansion ...," Playboy said in the regulatory statement.

The new agreement also spells out terms of using the Playboy name past his life.

"Following Mr. Hefner’s death or any time at which he no longer owns any equity in purchaser, the surviving corporation may continue using the licensed property in connection with then-existing uses that were previously approved by Mr. Hefner for an annual license fee of $250,000 payable to a charitable foundation or other nonprofit designated by Mr. Hefner or his estate," Playboy said in the filing.

"The surviving corporation also receives a right of first negotiation/offer if Mr. Hefner ever elects to sell, assign or transfer the licensed property to a third party."

Playboy also said that CEO Scott Flanders will receive an annual base salary of $900,000, with an annual increase of $25,000 commencing in March, and an annual bonus opportunity of up to 100 percent of his base salary.

Hefner, who controls Icon Acquisition Holdings, plans on taking Playboy private along with investment firm Rizvi Traverse Management LLC, which was first approached by Playboy to go private in December 2009.

Previous to today's tender offer, Hefner owned about 70 percent of Playboy's Class A common stock and 28 percent of its nonvoting Class B stock.

The transaction values the company at about $207 million, topping Hefner's offer of $5.50 per share in July, though just shy of an offer made by FriendFinder Networks that's valued at $210 million.

Playboy's board of directors revealed in the filing Monday night it had turned down a higher price offer from FriendFinder , indicating the bid's value was less than that of Hefner's all-cash proposal.

Monday night’s SEC filings relative to Playboy can be viewed on its website here.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

European Commission to Assess Pornhub, XVideos, XNXX Compliance With Digital Services Act

The European Commission plans to conduct a study to determine how well adult sites Pornhub, XVideos and XNXX are addressing illegal content and other potential harms under the EU’s Digital Services Act.

Sabien DeMonia Stars in Latest From Brazzers

Sabien DeMonia stars with Jordi El Nino Polla and Danny D in the latest release from Brazzers, titled “Double Stuffed Sabien.”

Connie Perignon Makes Her Deeper Debut

Connie Perignon has made her debut for Vixen Media Group (VMG) studio imprint Deeper, alongside Kazumi and Anton Hardon in “Bare Witness.”

German Higher Court Upholds Ban on PornHub, YouPorn

The Higher Administrative Court of Rhineland-Palatinate on Thursday upheld a “network ban” on Aylo-owned adult sites Pornhub and YouPorn for failing to comply with German age verification regulations.

Kaci Kennedy Makes Her WIFEY Debut

Creator Kaci Kennedy stars with her husband Dakota Sexton and Chocolate Rod in the latest release from Vixen Media Group studio imprint WIFEY.

Bad Bella Makes Her New Sensations Debut

Bad Bella has made her New Sensations debut, starring alongside Danny Mountain.

Alabama Notifying Adult Sites of New Tax Set to Take Effect Sept. 1

The Alabama Department of Revenue has begun sending notices to adult site operators about a new 10% tax on their revenues, set to be enforced starting Sept. 1.

Ondato, CCBill Announce Strategic Partnership for Global High-Risk Market

Age and identity verification firm Ondato and payment processor CCBill have formed a strategic partnership to serve the global high-risk market.

Ofcom Investigates 4 More Adult Companies for OSA Compliance

U.K. media regulator Ofcom has launched investigations into whether four companies operating adult websites have implemented requisite age assurance measures under the Online Safety Act, the agency announced Thursday.

Keiran Lee Gets Star Send-Off from Brazzers Ahead of UK Homecoming

Keiran Lee is coming home. Two decades after moving from England to the United States to sign an exclusive contract with Brazzers, the award-winning performer is moving back to the U.K. this week along with his wife, fellow performer Kirsten Price, and their three children.

Show More