T-Mobile’s bold, attention-grabbing CEO John Legere is out, and he’s handing the reins to the longtime heir apparent, Mike Sievert.
Sievert will step into Legere’s magenta-colored shoes on May 1, 2020, and the company just revealed in a regulatory filing what Sievert and other executives will be paid under their new compensation plans.
Spoiler: it won’t be anywhere near the remarkable $66.5 million that Legere took home last year, largely thanks to tens of millions of dollars worth of stock tied to the pending Sprint merger. But at least Sievert’s pay will be within spitting distance of rival CEOs at Verizon and ATT.
Mike Sievert, Incoming CEO
Siever takes on the CEO role with a base salary of $1.4 million that will jump to $1.5 million in year two and $1.6 million or more in year three.
He’ll also get a one-time $3.5 million cash award that will either be paid within 30 days of the planned T-Mobile-Sprint merger, on the date the deal is terminated, or on Dec. 1 2020 — whichever comes first. Under the terms of Sievert’s prior contract, he would have been able to leave T-Mobile if he wasn’t named CEO within six months of the merger closing.
Sievert will be awarded performance-based short-term incentives each year, which are targeted at $3.5 million and could be as high as $7 million. Under a long-term incentive program, the incoming CEO will also receive restricted stock with a target value of $13.5 million in the first year, which will rise to $14.25 million in year two and $15 million or more in year three.
We have built an incredible brand as the #uncarrier – one that is differentiated from the competition and known for customer obsession! I could not be more excited to continue to follow in @JohnLegere’s footsteps and expand this mission as CEO of @TMobile on May 1.
— Mike Sievert (@SievertMike) November 18, 2019
Finally, Sievert will be entitled to around $20 million worth of stock after three years on the job as CEO, provided T-Mobile’s stock price hits certain performance goals.
In his role as COO and president, Sievert made a base salary of $1.2 million, short-term annual incentives of $2.4 million and long-term incentives valued at $10.35 million.
How Sievert’s pay compares to ATT and Verizon
Due to the variable nature of CEO pay, it’s tough to say how Sievert’s compensation stacks up against that of Verizon and ATT leaders. But based on the figures above, Sievert may well exceed $20 million in total compensation his first year, which would put him in the same league as his rivals.
Last year, ATT CEO Randall Stephenson earned $29.1 million, which was boosted by the acquisition of Time Warner. His base salary was $1.8 million last year and he earned $17 million in stock awards and $5.19 million non-equity awards.
Verizon CEO Hans Vestberg took home a total compensation package of $22.2 million last year. His base salary of $1.2 million was boosted by $16.6 million in stock awards, $2.75 million in non-equity incentives and $1.6 million in other compensation.
Neville Ray, President of Technology
Current CTO Neville Ray will become T-Mobile’s president of technology with a base salary of $900,000. Under the two-year contract, he’ll also get short-term incentives that are targeted at $1.8 million and a long-term incentive program that is valued at a targeted $6.75 million.
J. Braxton Carter, CFO
T-Mobile CFO J. Braxton Carter will remain with the wireless company until July 1, 2020 under his new contract. He’ll continue to receive his $950,000 base salary and benefits, but will not be eligible for incentive-based awards starting next year. Upon his departure, Carter will get a cash bonus of $7.5 million.