Sprint Corp. CEO Marcelo Claure pulled in nearly $27 million in compensation from the company striving to turn around its fortunes, according to an update on executive pay.
Claure’s big payday consisted of more than $22 million worth of Sprint shares that he will collect only if the company’s stock price climbs to $8 in the next few years. Sprint had revealed the big stock incentive, officially 10 million shares, about a year ago when he signed a job contract through May 2019.
The update added details to Claure’s deal and showed that other Sprint executives similarly have company shares heading their way if the stock price climbs high enough and stays there.
Executives with deals similar to Claure’s include chief financial officer Tarek Robbiati, chief marketing officer Roger Solé, area president Kevin Crull, area president Jaime Jones and chief technology officer John Saw.
“All are very similar in the way they’re structured,” Sprint spokesman Dave Tovar said. “They’re all focused on turning around Sprint and aligning the team in support of that goal.”
Overland Park-based Sprint has been gaining new customers in recent quarters and especially higher-value phone subscribers. Most recently, Claure said Sprint gained customers at the expense of each of its national rivals, though T-Mobile has questioned that claim.
Investors’ reaction to the news boosted Sprint’s stock price. Shares closed Friday at $6.14, their highest price since November 2014.
Under the stock deals, the other executives collectively would pick up 6.27 million Sprint shares if the stock price reaches $8 — and stays at that level on average for several months — before the end of May 2019. All the executives, including Claure, would receive half as much stock if Sprint shares stay above $7.50, and a fourth if they stay above $7.
The deals, because they were awarded during the year the report covered, ballooned the compensation total attributed to each of the executives. Their totals ranged between $4.7 million and $11.8 million.
Sprint’s updated pay report covered the executives for the 12 months that ended March 31, which covered the company’s most recently completed fiscal year.
Claure’s cash pay during those 12 months consisted of his $1.5 million salary and a $3 million short-term cash incentive bonus. Other compensation consisted mostly of $379,428 worth of personal jet time on corporate aircraft but also included $12,455 for “a portion of the time of an employee spent to accomplish personal tasks for Mr. Claure,” the report said.
Combined, the cash, stock and other items lifted the executive’s reported compensation total to $26,965,004 for the year.
A year earlier, Claure earned nearly $21.8 million, including stock and stock options valued at $18.3 million for the report to shareholders.
Sprint’s other executives, the report showed, received some moving expenses for their relocation to the area, typically a condition of being hired.
Claure has recruited some of the company’s top executives from outside the United States. He also recently held a party to welcome the families of 100 Sprint hires that he said the company has brought to the Kansas City area.
Among executives, Solé joined Sprint from Brazil’s second-largest wireless company and received $67,153 in relocation costs. Robbiati received $63,478 associated with his move from Australia. Crull received $396,659 that the report said covered relocation expenses from his move from Canada. Crull’s amount covered tax-protected reimbursements from reimbursable home selling expenses and direct reimbursements, the report said.
Saw received relocation expenses totaling $72,144, but he has not yet relocated here. He has been receiving “a tax protected monthly living stipend of $5,420,” the report said. It runs until October 2017. Saw had been part of Clearwire when it merged into Sprint and worked in the Seattle area.
Sprint’s report updated the severance and other compensation that former chief financial officer Joe Euteneuer received during the fiscal year the report covered. It was $9.9 million.