8-KLeadership Changes

AMERICAN TOWER CORP /MA/ 8-K Report, Executive Changes (Feb 13, 2007)

Filed February 13, 2007For Securities:AMT

Summary

This Form 8-K filing from American Tower Corporation (AMT) on February 13, 2007, reports a key director's decision not to seek re-election and outlines the 2007 compensation arrangements for its top executives. Fred R. Lummis, a long-standing board member, will retire from the Board at the upcoming 2007 annual meeting to focus on his role at Platform Partners, LLC. His departure is amicable and not due to any disagreements. Furthermore, the filing details the approved base salaries and target cash bonus incentives for the Named Executive Officers for the year ending December 31, 2007. The compensation committee considered factors such as company financial performance (total revenue and Adjusted EBITDA), strategic goal achievement, and individual executive contributions. This provides insight into management's compensation structure and the company's performance expectations for the upcoming fiscal year.

Key Highlights

  • 1Director Fred R. Lummis will not stand for re-election to the Board at the 2007 annual meeting, retiring after serving since June 1998.
  • 2Mr. Lummis's decision to retire is voluntary and for the purpose of dedicating his full attention to his role as Chairman and CEO of Platform Partners, LLC.
  • 3There are no stated disagreements between Mr. Lummis and the Board or Company management regarding his departure.
  • 4The Compensation Committee approved base salaries and cash bonus incentive targets for Named Executive Officers for the year ending December 31, 2007.
  • 5CEO James D. Taiclet, Jr. has a base salary of $835,000 with a target cash bonus of 60% ($501,000).
  • 6CFO Bradley E. Singer has a base salary of $600,000 with a target cash bonus of 60% ($360,000).
  • 7Annual cash bonus incentives are based on company financial performance (total revenue, Adjusted EBITDA), strategic goals, and individual executive contributions, with potential for increases.

Frequently Asked Questions

Fred R. Lummis is not standing for re-election to the Board at the 2007 annual meeting of stockholders. He has decided to retire from the Board to devote his full time and attention to his position as Chairman and Chief Executive Officer of Platform Partners, LLC. His decision is not a result of any disagreement with the Board or Company management.

The approved base salaries for 2007 range from $400,000 for Executive Vice President, General Counsel and Secretary William H. Hess to $835,000 for Chairman, President and CEO James D. Taiclet, Jr. All Named Executive Officers have a target cash bonus potential of 60% of their base salary, representing amounts from $240,000 to $501,000.

The Compensation Committee bases decisions for annual cash bonus incentives on several factors, including the Company's financial performance (specifically total revenue and Adjusted EBITDA), the achievement of certain strategic goals, and each executive's contribution to the Company's overall performance. The Compensation Committee also retains discretion to increase performance bonuses if company or individual goals are exceeded.

Additional details regarding the compensation of American Tower Corporation's Named Executive Officers will be included in the Company's 2007 Proxy Statement when it is filed with the Securities and Exchange Commission.