T-Mobile US (NYSE:TMUS) CEO John Legere saw his total compensation drop in 2014 to around $18.57 million, according to a securities filing. Legere's compensation is down from $29.24 million in 2013, when he was the highest-paid executive in the wireless industry. [click to tweet]
Like other publicly-traded companies, T-Mobile recently filed a statement with the Securities and Exchange Commission detailing the compensation packages of its top executives and board of directors. According to the SEC filing, Legere's 2014 base salary was the same as in 2013 at $1.25 million. In 2013, Legere received a bonus of $525,000 but in 2014 received no bonus. In 2013, Legere received $22.5 million in compensation via stock awards, but in 2014 that figure went down to $10.66 million. Legere did see his compensation via the company's non-equity incentive plan jump from around $4.83 million in 2013 to $6.6 million in 2014.
In February, T-Mobile revealed that it had inked a new employment agreement with Legere that extends the original term of his employment from Sept. 22, 2015, to Sept. 22, 2017, and increases Legere's annual base salary to $1.5 million.
In the filing, the company noted that "the substantial majority" of its top executives' total compensation for 2014 "was in the form of variable compensation (short-term and long-term)."
The 2014 short-term incentive plan awards were based entirely on the carrier's performance, which was measured by total service revenue, branded net subscriber additions, adjusted EBITDA and operating free cash flow.
T-Mobile added 8.3 million total wireless customers in 2014, including 4.9 million branded postpaid customers--by far the most in the U.S. industry. The company's service revenue grew 9 percent year-over-year in 2014, and T-Mobile reported adjusted EBITDA of $5.6 billion, up 6 percent year-over-year despite the higher customer growth.
Legere received less compensation in 2014 than AT&T (NYSE: T) CEO Randall Stephenson, who made $23.98 million, but he made just a bit more than Verizon (NYSE: VZ) Communications CEO Lowell McAdam, who received $18.3 million in compensation. Sprint (NYSE: S) has not yet reported on its 2014 compensation for its executives.
In 2014, T-Mobile CFO Braxton Carter received $2.08 million in total compensation, down from $12.83 million in 2013, mainly because he did not receive any stock award compensation in 2014 (in 2013 he received $9.49 million in such compensation). T-Mobile COO Mike Sievert received $2.65 million in total compensation in 2013. Sievert assumed the COO role on Feb. 13, 2015, and before that had been CMO.
- see this SEC filing
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