January 24, 2005

Sprint and Nextel noted in SEC filings that they are offering a number of top executives some bonuses if they stay with the carriers, following their planned $35 billion acquisition, scheduled to close later in 2005.

Sprint said in its filing that its compensation committee of the board of directors agreed that all executive officers-excluding Gary Forsee, current chairman and chief executive officer, and Len Lauer, president and chief operating officer-would be eligible to receive cash incentives of 100 percent of their base salaries and short-term incentive targets.

Half of the cash incentives would be paid once the merger closes, with the remaining incentives paid a year later.

Forsee will be named president and CEO of the newly named Sprint Nextel, while Lauer will serve as COO of the new company.

The filing also noted that the president of Sprint's local telecommunications division, which the carrier said it plans to spin off as part of the merger, would receive the incentive payment at the time of the spinoff as well as the one-year anniversary of the spinoff.

Published reports indicated Nextel's plans call for top executives to collect their annual base salaries and performance bonuses, as well as one-time payments equal to 150 percent of salaries and bonuses following the merger.

Current Nextel President and CEO Tim Donahue, who earned a reported $29.4 million last year in salary, bonuses and stock options, would receive a separate employment retention agreement. Donahue is scheduled to become chairman of Sprint Nextel following the merger.

Source: RCR Wireless News

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