Summary
AT&T Inc. (T) announced the retirement of its Executive Chairman, Randall Stephenson, effective January 21, 2021. This transition marks the end of Mr. Stephenson's tenure as Executive Chairman, though he will continue to provide services to the company in a consulting capacity. The company has entered into a one-year Consulting Services Agreement with Mr. Stephenson to ensure a smooth handover and leverage his continued expertise. This agreement includes a payment of $1,000,000, payable in quarterly installments, and an amendment to his existing performance share grants. Notably, the proration of these grants will not apply upon his retirement, allowing for full distribution after the performance period. The agreement also includes standard confidentiality and non-compete clauses, ensuring the protection of AT&T's interests while retaining Mr. Stephenson's advisory role. Investors should note this as a significant leadership change, albeit one with a planned transition and continued engagement from a key executive.
Key Highlights
- 1Randall Stephenson, Executive Chairman, is retiring effective January 21, 2021.
- 2AT&T has entered into a one-year Consulting Services Agreement with Mr. Stephenson.
- 3Mr. Stephenson will receive $1,000,000 in total compensation for his consulting services.
- 4His undistributed performance share grants will not be prorated upon retirement.
- 5Mr. Stephenson remains eligible for full distribution of his performance shares after the applicable three-year period.
- 6The agreement includes restrictive covenants such as non-competition, non-solicitation, and confidentiality.
- 7The company will reimburse Mr. Stephenson's reasonable expenses and provide communication concessions.