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Alltel employee pay won't fall, management's future still unknown Thursday, Jun 14, 2007 By Jason Wiest Arkansas News Bureau LITTLE ROCK - Alltel's "preliminary proxy" filed Wednesday answered some questions regarding compensation for employees in the company's proposal sale, but some questions still remain. For the next two years, employee compensation and termination guidelines will remain the same, according to the Securities and Exchange Commission filing. Through Dec. 31, 2009, "the surviving corporation will provide our current employees with annual base salary and base wages, cash incentive compensation opportunities and benefits, in each case, that are no less favorable than those that we provide (excluding equity-based compensation) as of immediately prior to the effective time of the merger," the filing said. Employee severance benefits will also remain the same, except for employees with individual severance agreements outside company policies, the filing said. Although Alltel CEO Scott Ford said in a press conference May 21 that a one-time employee bonus was negotiated into the $26.3 billion deal with TPG and GS Capital Partners, details were not revealed. The filing also did not include any information on the future of Alltel's management team, but it did lay out possibilities, including serving on the board of directors or having a financial stake in the newly private company. Regarding management's future, the filing said that "in connection with their continued employment these members may be offered the opportunity to exchange some portion of their current Alltel shares, stock options and other equity interests, instead of receiving a cash payment for them, for equity in the post closing company." TPG and GS Capital have not yet held negotiations with the team. Ford is the only member of the team specifically mentioned in the filing, which says that he has indicated "a willingness to remain in his current role after the closing of the merger." "However, these matters are subject to further discussion and negotiation," the filing said. Former Alltel CEO and current board chairman Joe Ford will receive $750,000 under an employment agreement regarding a potential Alltel sale made when he retired as CEO. The compensation was not part of the buyout agreement negotiated with TPG and GS Capital. Joe Ford would receive another $243.4 million from the sale of his 3.4 million shares of stock. Stock sales for other members of Alltel's board of directors and executives, who collectively own 27.6 million shares, or 8 percent, of Alltel's outstanding shares totaling $1.975 billion, include: Board of Directors -John Belk: $5.8 million -Peter Bridgman: $1 million -William Crown: $410.8 million -Lawrence Gellerstedt: $5.7 million -Emon Mahony Jr.: $9.6 million -John McConnell: $6.3 million -Josie Natori: $5.8 million -John Stanton: $158.9 million -Warren Stephens: $650.8 million -Ronald Townsend: $2 million Senior Management -Kevin Beebe: $109 million -Jeffrey Fox: $113.7 million -Sharilyn Gasaway: $8.6 million -Richard Massey: $4.3 million |
