Dan Hesse, the CEO of Sprint, has received a contract extension through 2018. Hesse’s contract with Sprint has been up for renewal every year. The new five-year cycle is effective as of this past Wednesday, according to an SEC filing from this past Friday.
This contract includes no compensation changes from Hesse’s previous contract, according to BizJournals. SoftBank approved of the contract extension several days before 161 Clearwire Corporation employees were fired as part of merger-related layoffs. More layoffs are expected to happen in the near future too.
Hesse’s contract will be ending July 31, 2018 with an annual salary of $1.2 million.
Hesse is eligible for bonuses too. The SEC filing states “Plan allows for a “targeted opportunity” that’s 200 percent of Hesse’s annual base salary and a maximum award equal to 200 percent of the targeted opportunity, plus a long-term incentive compensation plan.”
If Hesse resigns or is terminated, he has a noncompete for two years. Hesse would also continue to receive his base salary for two years and would receive a prorated payment under the short-term incentive plan based on when he leaves the company.
In terms of severance protections, Hesse is eligible for as much as $8.6 million if he leaves Sprint within 18 months of the SoftBank merger.
SoftBank completed the $21.6 billion acquisition of Sprint in mid-July. SoftBank will own 78% of the new Sprint Corporation. Sprint’s equity holders will own 22%.