A recent SEC filing laid out the "upside" part of executive compensation for Jeff Bewkes, president and CEO of Time Warner Inc. (NYSE: TWX). He has received options that gives him the right to acquire 1.5 million shares of common stock. Bewkes' new options have a $14.92 exercise price and will vest over the next four years.

Bewkes already received options to purchase 950,000 shares in December in connection with his new employment agreement. Former CEO Richard Parsons still remains chairman and he has received 106,500 restricted stock shares and an option to acquire 319,400 shares.

If Bewkes and the team perform and this stock goes back up to $20, Bewkes would net an extra $7.62 million in gains before taxes.

This does not look egregious at all when you consider the situation. Bewkes stepped in right when the economy started a serious slump and negative stock performance had already started well before that. It may take some time for Time Warner's stock to get back up to $20 because of the economy and the bite of the bear market. Shareholders should be glad to see that he has some serious incentive to perform.

Time Warner shares gained 37 cents, or about 3%, today to close at $14.84. The 52-week trading range before this was $14.64 to $21.97. This stock ended 2007 at $16.45 and shares were above $18 last November.