Sprint - Nextel 2012 Annual Report Download - page 91

Table of Contents
With respect to the 2012 STIC plan, each named executive officer earned a payout of approximately 100.7% of his targeted opportunity based on actual
performance in 2012. For more information regarding our STIC plan, see “—Compensation Discussion and Analysis—Primary Components of Executive
Compensation—Short-Term Incentive Compensation Plan.”
With respect to the performance units under the 2010 LTIC plan and 2011 LTIC plan, the amount shown includes the amount earned with respect to
performance units granted by the Compensation Committee on March 16, 2010 and February 23, 2011, respectively. The performance unit award is
allocated one -third to each annual performance period for three years (2010-2012 or 2011-2013, as applicable), and is payable in cash after the end of the
three -year period. Each annual performance target is set by the Compensation Committee at the start of each respective single-year performance period, and
the payout of the performance unit award may range from 0% to 150% based on the achievement of specified results. For 2012, the performance unit award
payout was based on the Company's achievement of specified results with respect to free cash flow, net service revenue and Network Vision deployment,
equally weighted, and the achievement on the objective was 71.35% of target.
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The incremental cost of use of our aircraft is calculated by dividing the total variable costs (such as fuel, aircraft maintenance,
engine warranty expense, contract labor expense and other trip expenses) by the total flight hours for such year and multiplying such amount by the
individual's total number of flight hours for non-business use for the year.
The Compensation Committee has established an overall security program for Mr. Hesse. Under the security program, we provided
Mr. Hesse with residential security systems and equipment and he was required to use our aircraft for business travel as well as non-business travel.
Mr. Hesse was permitted to have his family accompany him on the corporate aircraft for business and non-business travel.
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2012 STIC
Plan
($)
2010
Performance
Units
($)
2011
Performance
Units
($)
Total
($)
Hesse
2,417,280
1,189,090
1,396,087
5,002,457
Euteneuer
1,014,754
—
416,181
1,430,935
Cowan
912,775
297,273
297,273
1,507,321
Elfman
818,350
356,727
386,454
1,561,531
Johnson
528,945
152,204
166,472
847,621
(5)
As previously disclosed on Sprint's Current Report on Form 8-K filed on May 4, 2012, Mr. Hesse agreed to a reduction in his target opportunity under the
2012 STIC plan from 200% to 170%, which returned his incentive opportunity to his 2010 level.
(6)
Consists of: (a) amounts contributed by us under our 401(k) and deferred compensation plans; and (b) perquisites and other personal benefits as follows:
Year
Company
Contributions to
401(k) and Deferred
Compensation Plans
($)
Perquisites
and Other
Personal
Benefits
($)(a)
Hesse
2012
145,980
21,354
Euteneuer
2012
14,875
—
Cowan
2012
14,875
—
Elfman
2012
14,875
—
Johnson
2012
14,875
—
(a)
The perquisites and other personal benefits received by Mr. Hesse in 2012 consisted of: non-business use of our corporate aircraft by Mr. Hesse and
his family, which had an incremental cost to us of $7,416; costs for security services for Mr. Hesse's residence, which had an incremental cost to us of
$13,938; and personal IT and tech support.