Michael Cavanagh Becomes Chief Financial Officer for Comcast

Michael J. Cavanagh, who joined a private equity company after leaving J. P. Morgan Chase & Co, has now become the chief financial officer of Comcast Corp. He was hardly a year at Carlyle Group LP, the previously mentioned private equity company.

Comcast, the giant cable company, is making re-grouping efforts after its acquisition deal worth $45.2 million with Time Warner Cable Inc. collapsed.

Recently, Cavanagh said that he could not resist the opportunity to serve at Comcast, which happens to be the biggest provider of television and broadband providers in the country.

Comcast also owns a group of television networks called NBC Universal. He is expected to take over from Michael J. Angelakis, who will continue to be the company’s senior advisor, by July 6.

Last year, 49-year-old Cavanagh joined as the co-chief operating officer and co-president of Carlyle along with Glenn Youngkin, the deal maker for Carlyle. The duo handled the company’s Washington D.C. daily affairs, and Cavanagh was expected to take over as the head of the company when its three founders retired.

The executives of Carlyle were surprised when Cavanagh informed him of his decision to work at Comcast. The firm, which became a publicly traded company in 2012, had made it quite clear to Cavanagh that he would become its leader. Similarly, executives of J. P. Morgan were shocked when he informed them in 2014 that he planned to leave.

As the finance chief of Comcast, Cavanagh has to deal with several challenges. He has joined the company when the number of consumers cancelling their pay TV connections is going up. Cavanagh will have to focus on this and other issues related to cost cutting in future.

Comcast has promised to pay Cavanagh $39.5 million in bonuses, cash, restricted stock, and deferred compensation. His base salary in 2015 would be $1.8 million and he would be getting a bonus that is thrice larger than this salary. In addition, he will receive a signing bonus of $10 million in performance-based stock and restricted shares worth $2.5 million. Comcast has also agreed to pay him the compensation of $9.8 million he lost while leaving Carlyle. If he stays on at Comcast for more than a year, he would receive deferred compensation worth $10 million.

In 2014, Carlyle had promised Cavanagh a compensation of $31.2 million, but he will be losing much of it as he is leaving in less than a year.