Sprint - Nextel 2012 Annual Report Download - page 94

Table of Contents
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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. Amounts shown above are before this reduction. After reduction, Mr. Hesse's threshold, target and maximum are $510,000, $2,040,000,
and $4,080,000, respectively.
As previously disclosed on Sprint's Current Report on Form 8-K filed on May 4, 2012, Mr. Hesse agreed to forfeit $2 million in performance units under the
2012 LTIC plan. Amounts shown above are before this reduction. After reduction, Mr. Hesse's threshold, target and maximum are $1,655,000, $6,620,000,
and $9,930,000, respectively.
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(1)
STI—Represents the threshold, target and maximum estimated possible payouts for fiscal year 2012 under our 2012 STIC plan. Payouts under the 2012 STIC
plan, which were based on our 2012 actual performance compared to the financial and operating objectives of the plan, were made at approximately 100.7%
of each named executive officer's target opportunity and are reflected in the 2012 Summary Compensation Table in the column entitled “Non-
Equity Incentive
Plan Compensation.” Each performance objective under the plan had a threshold achievement level, below which there would be no payout, a target
achievement level, at which the target opportunity would be paid, and a maximum achievement level, at which 200% of the target would be paid for the
annual performance period. For purposes of this table, the minimum estimated possible payout assumes that the threshold achievement level was satisfied.
For more information on the 2012 STIC plan, see “Compensation Discussion and Analysis—Primary Components of Executive Compensation—Short-term
Incentive Compensation Plan.”
(2)
LTI—Represents the threshold, target and maximum estimated possible payouts for performance units granted by the Compensation Committee on March 16,
2010 under the 2010 LTIC plan. In early 2012, the Compensation Committee set goals for this grant for the 2012 performance period with respect to free
cash flow, net service revenue and Network Vision deployment.
(3)
LTI—Represents the threshold, target and maximum estimated possible payouts for performance units granted by the Compensation Committee on February
23, 2011 under the 2011 LTIC plan. In early 2012, the Compensation Committee set goals for this grant for the 2012 performance period with respect to free
cash flow, net service revenue and Network Vision deployment.
(4)
LTI—Represents the threshold, target and maximum estimated possible payouts for performance units granted by the Compensation Committee on February
22, 2012 under the 2012 LTIC plan. In early 2012, the Compensation Committee set goals for the 2012-2014 LTIC plan performance period with respect to
free cash flow, net service revenue and Network Vision deployment.
(5)
pRSUs—Represents a performance-based RSU award granted under our 2010 LTIC plan, which is subject to adjustment in accordance with the performance
objectives. Vesting occurs 100%, as adjusted for achievement in each of the three one-year performance periods ending on December 31, 2010, 2011, and
2012, on March 16, 2013. In early 2012, the Compensation Committee set goals for the 2012 LTIC plan performance period with respect to free cash flow,
net service revenue and Network Vision deployment. The total number of performance-based RSUs granted is set forth below. Because we failed to meet
threshold achievement with respect to our Network Vision deployment objective, the RSUs forfeited are also set forth below.
2010 Performance -
based RSUs
1/3 for 2012
Forfeited for 2012
Hesse
831,025
277,009
92,244
Cowan
207,756
69,252
23,061
Elfman
249,307
83,103
27,673
Johnson
106,371
35,457
11,807
(6)
pRSUs—Represents a performance-based RSU award granted under our 2011 LTIC plan, which is subject to adjustment in accordance with the performance
objectives. Vesting occurs 100%, as adjusted for achievement in each of the three one-year performance periods ending on December 31, 2011, 2012, and
2013, and on February 23, 2014 (April 4, 2014 for Mr. Euteneuer). In early 2012, the Compensation Committee set goals for the 2012 performance period
with respect to free cash flow, net service revenue and Network Vision deployment. The total number of performance-based RSUs granted is set forth below.
Because we failed to meet threshold achievement with respect to our Network Vision deployment objective, the RSUs forfeited are also set forth below.