AOL Extends Tim Armstrong's Contract Through 2016

AOL CEO Tim Armstrong has a new deal through 2016

AOL on Friday gave CEO Tim Armstrong a four-year contract extension running through 2016.

Armstrong, who has been CEO since March of 2009, will continue to earn a base salary of $1 million and is eligible to earn an annual bonus of up to $2 million.

Armstrong also earned $5 million in options, but much of that depends on the performance of AOL's stock.

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The exec has been trying to turn around the internet company's fortunes as legions of subscribers defect. He has made a big bet on the hyper-local Patch venture, which has yet to pay off. A year ago, the company acquired Huffington Post as part of its bet on the content side of the business. HuffPo co-founder Arianna Huffington runs the editorial side of the company.

"We are continuing to work on the comeback of AOL and have a plan that is beneficial for employees, customers and shareholders," the company said in its filing with the Securities and Exchange Commission. "We believe strongly that all of our brands are important to our brand portfolio. We will continue to update investors as we execute on our plan."