Summary
This 8-K filing from AT&T Inc. (T) announces the retirement of its Senior Executive Vice President and Chief Financial Officer, John Stephens, effective March 31, 2021. In connection with his retirement, the company has entered into a one-year consulting agreement with Mr. Stephens to leverage his expertise in tax and finance matters. Investors should note that AT&T will pay Mr. Stephens up to $2 million for these consulting services, with payments structured to incentivize specific outcomes. These include a base payment, a payment upon resolution of a federal tax audit for the 2010/2011 cycle, and a performance-based payment tied to achieving $26 billion or more in free cash flow for 2021, pension plan funding exceeding 90% by year-end 2021, or a $1 billion reduction in net pension and OPEB liabilities during 2021. The agreement also includes standard restrictive covenants such as non-competition and confidentiality.
Key Highlights
- 1John Stephens, Senior Executive Vice President and CFO, is retiring effective March 31, 2021.
- 2AT&T has entered into a one-year consulting services agreement with the retiring CFO, John Stephens.
- 3The consulting agreement is valued at up to $2,000,000 in total compensation.
- 4A portion of Mr. Stephens' compensation is contingent on the resolution of a specific federal tax audit (2010/2011 cycle).
- 5Another portion of the compensation is performance-based, tied to achieving specific free cash flow targets, pension plan funding levels, or pension/OPEB liability reductions in calendar year 2021.
- 6The agreement includes restrictive covenants, such as non-competition, non-solicitation, and confidentiality.