Sprint CEO Set to Get $78 Million If T-Mobile Deal Wins Approval
(Bloomberg) -- Sprint Corp. Chief Executive Officer Marcelo Claure is poised to collect about $78 million if shareholders and regulators approve T-Mobile US Inc.’s bid to buy the rival wireless carrier.
Claure, 47, has a long-term award of 10 million Sprint shares, worth $66.2 million at the offer price, according to data compiled by Bloomberg. The stock will fully vest if he’s terminated within 18 months of the deal’s completion, or if his responsibilities change materially. He’s also eligible for cash severance of about $11.6 million and $54,000 of other benefits.
Sprint said Sunday it agreed to be acquired by T-Mobile in a $26.5 billion all-stock deal, which equals about $6.62 a share. That’s a big “if” right now amid doubts that regulators will approve the deal, with shares of Sprint tumbling 13 percent to $5.65 at 10:32 a.m. in New York. T-Mobile and Sprint, the third- and fourth-biggest U.S. wireless carriers, previously attempted a merger in 2014 that regulators firmly rebuffed.
If the deal does secure the blessings of the U.S. Justice Department and Federal Communications Commission, T-Mobile’s John Legere would become CEO of the combined company, while Claure would join the board, the firms said in a statement.
In addition to his golden parachute, Claure owns 6.89 million Sprint shares worth about $45.6 million at the offer price.
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