Sprint - Nextel 2012 Annual Report Download - page 90

Table of Contents
For the performance-based RSU awards, the value represents the aggregate grant date fair market value computed in accordance with FASB ASC Topic 718
as of the date the Compensation Committee approved the applicable objectives and targets for the 2012 performance period under the 2010 LTIC plan and
the 2011 LTIC plan, and for the three-year performance period covering 2012-2014 under the 2012 LTIC plan. The RSUs vest on the third anniversary of
the grant, but are also subject to performance-based vesting conditions. The RSUs under the 2010 and 2011 LTIC plans are allocated one-
third to each
annual performance period for three years, 2010-2012 for the 2010 LTIC plan and 2011-2013 for the 2011 LTIC plan. Each annual performance target is
set by the Compensation Committee at the start of each respective single year performance period. Based on achievement of specified results with respect to
free cash flow and net service revenue, and the failure to achieve specified results with respect to Network Vision Deployment sites on air in 2012, some RSUs
have been forfeited. The table below shows the number of RSUs forfeited and their grant date values.
See “—Compensation Discussion and Analysis—Primary Components of Executive Compensation—Long-Term Incentive Compensation Plan.”
85
(2)
The value shown for 2012 is the sum of three awards: performance-based RSU awards under the 2010 LTIC plan, the 2011 LTIC plan, and the 2012 LTIC
plan.
2010 RSUs ($)
2011 RSUs
($)
2012 RSUs
($)
Total
($)
Hesse
617,730
717,317
2,225,023
3,560,070
Euteneuer
—
170,414
1,045,313
1,215,727
Cowan
154,432
125,562
746,651
1,026,645
Elfman
185,320
163,232
970,648
1,319,200
Johnson
79,069
70,316
447,991
597,376
2010 RSUs (#)
2010 RSUs ($)
2011 RSUs (#)
2011 RSUs ($)
Hesse
92,244
205,704
107,115
238,866
Euteneuer
—
—
25,448
56,749
Cowan
23,061
51,426
18,750
41,813
Elfman
27,673
61,711
24,375
54,356
Johnson
11,807
26,330
10,500
23,415
(3)
Represents the grant date fair value of options granted in 2012 computed in accordance with FASB ASC Topic 718. The grant date fair value reported in
2012 is higher than the respective portion of the target opportunities disclosed under "Compensation Discussion and Analysis—Compensation Overview—
Components of Our Executive Compensation Program", consistent with our practice in prior years, to determine the number of stock options to be delivered
under the LTIC plan. Under that methodology, which is commonly used to alleviate short-term fluctuations in the stock price used in the conversion from
dollar-denominated awards to shares, we calculate an average closing price of our stock over a 30 calendar day period before the grant (for the 2012 LTIC
plan, that period ended on February 3, 2012 and the average stock price was $2.24). The Black-Scholes value was $1.15 using this average price per share.
The target dollar value to be delivered in stock options is then divided by the Black-Scholes value to determine the number of stock options granted to the
participant. The strike price is the closing price of our common stock on the date the award was granted.
(4)
The value shown for 2012 is the sum of three amounts: the payout under the 2012 STIC plan, a performance unit award under the 2011 LTIC plan and a
performance unit award under the 2010 LTIC plan.