Sprint - Nextel 2013 Annual Report Download - page 73

Table of Contents
Compensation Discussion and Analysis
This compensation discussion and analysis describes and analyzes our compensation program for our named executive officers for 2013, who were:
Daniel R. Hesse, President and CEO; Joseph J. Euteneuer, CFO; Steven L. Elfman, President, Network, Technology and Operations; Robert L. Johnson,
President, Sprint Retail and Chief Service and Information Technology Officer; Charles R. Wunsch, Senior Vice President, General Counsel, Corporate Secretary
and Chief Ethics Officer; and Paget L. Alves, former Chief Sales Officer.
Compensation Overview
Philosophy and Objectives of Our Executive Compensation Program
Components of Our Executive Compensation Program
The major components of our executive compensation program are base salary, our short
- term incentive compensation (STIC) plan, and our long -
term incentive compensation (LTIC) plan. The base salary and target opportunities under the STIC plan as of December 31, 2013 and LTIC plan opportunities for
2013 for our named executive officers are listed below.
_________________________________
2013 Performance and Key Compensation Decisions
2013 marked one of the most eventful years in Sprint
’ s history. We successfully completed the SoftBank Merger, which strengthened Sprint ’ s
balance sheet and provided capital for continued investment in the modernization of our network, which allows us to upgrade our technology, expand our
service offerings and improve the quality and reliability of our product offerings. The SoftBank Merger also has allowed Sprint to leverage SoftBank
’ s
operational and technological expertise. We also completed the Clearwire Acquisition, from which we expect to fully utilize and integrate Clearwire's
complementary 2.5 GHz spectrum assets. In addition, we shut
- down the iDEN network in 2013, and through our network modernization project, we are
repurposing the 800 MHz iDEN spectrum and are continuing our buildout of 4G LTE. We also unveiled Sprint Spark
SM
, a combination of advanced
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Item 11.
Executive Compensation
•
Attract and retain qualified and experienced executives by providing base salaries, target incentives, and benefits that are market competitive
and by requiring that a large portion of total compensation is earned over a multi
- year period and subject to forfeiture to the extent that vesting
requirements and performance objectives are not met.
•
Pay for performance by tying a substantial portion of our executives' compensation opportunities directly to, and rewarding them for, our
performance through short
- and long - term incentive compensation plans that include performance objectives most critical to driving our
continued financial and operational improvement and long
- term stockholder value.
•
Align compensation with stockholder interests by structuring our compensation programs to align executive interests with those of our
stockholders, mitigate the possibility that our executives undertake excessively risky business strategies, and adhere to corporate governance
best practices.
Base Salary ($)
STIC Plan ($)
LTIC Plan(1) ($)
Hesse
1,200,000
2,400,000
13,800,000
Euteneuer
775,000
1,007,500
4,025,000
Elfman
650,000
812,500
3,737,500
Johnson
625,000
625,000
1,840,000
Wunsch
490,000
441,000
1,610,000
Alves(2)
475,000
475,000
1,610,000
(1)
As adjusted for the one-time overall 2013 LTIC plan target opportunity increase of 15% in connection with the SoftBank Merger, as discussed below.
(2)
Mr. Alves left the Company effective September 27, 2013.