Sprint - Nextel 2012 Annual Report Download - page 80

Table of Contents
Our LTIC plan objectives, targets, and actual results for 2012 for the performance units were as follows:
Our LTIC plan objectives, targets, and actual results for 2012 for the performance
- based RSUs were as follows:
In establishing the weighting among the three LTIC plan objectives, the Compensation Committee assigned equal weightings to Free Cash
Flow, Net Service Revenue, and Network Vision Deployment. While Network Vision Deployment was a critical objective as part of our investment
phase, the Committee also emphasized and provided an incentive for us to grow top
- line revenues, and drive cash flow, which are also critical as we
move through Phase Two.
Because the payout for the performance
- based RSUs is capped at 100% and there is no graduated scale for partial payout for performance
below target, the Compensation Committee set the Free Cash Flow, Net Service Revenue, and Network Vision Deployment targets at lower but still
meaningful levels as compared to the performance units.
We exceeded the target amounts set for Free Cash Flow for both performance units and performance
- based RSUs. With respect to Net
Service Revenue, we slightly exceeded target amounts set for performance
- based RSUs and were slightly below target amounts set for performance
units. Despite our marked improvements in brand strength noted above, we remain approximately one calendar quarter behind in Network Vision
Deployment as a result of delays from vendors related to logistics execution and material shortages, as well as delays due to the hurricane in the third
quarter of 2012. Because we failed to meet the minimum payout threshold under the Network Vision Deployment objective, each of our named
executive officers forfeited approximately one third of the performance
- based RSUs granted under the LTIC plan for each of 2010 and 2011 as follows:
_________________________________
75
Free Cash Flow
Performance Target
(in millions)
Net Service Revenue
Performance Target
(in millions)
Network Vision Deployment
Weight
Target ($)
Actual ($)
Weight
Target ($)
Actual ($)
Weight
Target
Actual
33.4%
(3,774)
(1,449
)
33.3%
32,821
32,097
33.3%
12,967
6,144
Free Cash Flow
Performance Target
(in millions)
Net Service Revenue
Performance Target
(in millions)
Network Vision Deployment
Weight
Target ($)
Actual ($)
Weight
Target ($)
Actual ($)
Weight
Target
Actual
33.4%
(4,704)
(1,449)
33.3%
31,321
32,097
33.3%
11,022
6,144
2010 Performance - based
RSUs Forfeited
2011 Performance - based
RSUs Forfeited
Hesse
92,244
107,115
Euteneuer1
—
25,448
Cowan
23,061
18,750
Elfman
27,673
24,375
Johnson
11,807
10,500
(1)
Mr. Euteneur commenced employment with the Company effective April 4, 2011 and therefore was not eligible to receive (and did not forfeit) any performance-
based RSUs granted under the LTIC plan for 2010.