Sprint - Nextel 2012 Annual Report Download - page 81

Table of Contents
CEO Realized Compensation
To better illustrate comparisons of pay to performance, it is helpful to consider realizable pay rather than the compensation shown in the
summary compensation table. The graph below shows the realizable pay for Mr. Hesse during his tenure with Sprint expressed as a percentage of his
target compensation. For the calculation of realizable pay:
Corporate Governance Highlights
We endeavor to maintain good governance standards, including with respect to our executive compensation practices. Several highlights
are listed below:
Setting Executive Compensation
Role of Compensation Consultant and Executive Officers
The Compensation Committee has retained Frederic W. Cook & Co., Inc., or Cook, as its independent compensation consultant.
Cook provides no services to us other than advisory services for executive and director compensation and has no other relationships with the
Company. Cook works with management only at the request
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Stock options are valued at the actual gains realized at exercise, or if outstanding at December 31, 2012 at intrinsic value (i.e., the excess
of the value per share of Sprint stock at December 31, 2012 over the exercise price multiplied by shares underlying the option);
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RSUs are valued based on the value at vesting, or December 31, 2012 if not vested, with adjustment for forfeiture for failure to achieve
any performance vesting conditions for completed performance period (we assume target performance for performance periods that were
not complete at December 31, 2012); and
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Compensation repaid or forfeited is included, as described in Sprint's Current Report on Form 8 - K filed on May 4, 2012.
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We have stock ownership guidelines and a clawback policy.
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Our named executive officers receive few perquisites, entitlements or elements of non - performance - based compensation, except for
market - competitive salaries and modest benefits that are comparable to those provided to all employees.
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Our severance benefits are positioned conservatively relative to market practices, with no benefit in excess of two times base salary plus
bonus, change
- in - control benefits payable only upon a “double - trigger” qualified termination, and no golden parachute excise tax
gross
- ups.
•
The Compensation Committee retains an independent advisor that performs no other work for the Company.