8-KLeadership Changes

T-Mobile US, Inc. 8-K Report, Executive Changes (Mar 6, 2009)

Filed March 6, 2009For Securities:TMUSTMUSZTMUSITMUSL

Summary

This 8-K filing from MetroPCS Communications, Inc. (now part of T-Mobile US, Inc.) on March 6, 2009, details executive compensation decisions made on March 4, 2009. The primary focus is on the approval of stock option and restricted stock grants for named executive officers, alongside the establishment of 2009 annual cash incentive performance awards. These grants and awards are designed to incentivize leadership and align executive compensation with company performance. The stock options were granted with an exercise price of $14.43 per share, reflecting the closing price on the grant date. Both options and restricted stock vest over a four-year period, with initial vesting occurring one year after the grant date, followed by monthly installments. The annual cash incentive awards for 2009 are structured based on a mix of company-wide performance metrics (70%) and individual performance (30%), with specific targets and maximum payout opportunities outlined as a percentage of base salary.

Key Highlights

  • 1MetroPCS Communications, Inc. approved grants of stock options and restricted stock to its named executive officers on March 4, 2009.
  • 2The exercise price for all stock options granted was $14.43 per share, matching the closing stock price on the grant date.
  • 3All stock option and restricted stock grants vest over a four-year period, with 25% vesting after one year and the remainder vesting monthly over the subsequent three years.
  • 4The company established 2009 annual cash incentive performance awards for named executive officers.
  • 5Performance awards will be paid in 2010 based on fiscal year 2009 performance against pre-approved criteria.
  • 6Company/team performance metrics (Gross margin, Adjusted EBITDA per average subscriber, Net additions) account for 70% of the cash performance award weighting.
  • 7Individual performance metrics account for the remaining 30% of the cash performance award weighting.

Frequently Asked Questions

The main purpose of this 8-K filing is to disclose significant executive compensation actions taken by MetroPCS Communications, Inc. on March 4, 2009, specifically the granting of stock options and restricted stock, and the establishment of annual cash incentive performance awards for 2009.

The stock options and restricted stock grants vest over a four-year period. Twenty-five percent vest on March 4, 2010, and the remaining 75% vest in equal monthly installments over the following 36 months. The exercise price for options is $14.43 per share.

The 2009 cash performance awards will be based on a combination of company-wide performance criteria (70%) and individual performance criteria (30%). Company-wide metrics include gross margin, adjusted EBITDA per average subscriber, and net additions. The actual payout will be determined by the achievement of pre-approved performance targets and can range from target levels up to a maximum opportunity based on exceeding goals.

The key executives include Roger D. Linquist (President and CEO), Thomas C. Keys (COO), J. Braxton Carter (CFO), Mark A. Stachiw (General Counsel), and Robert A. Young (Senior Vice President, Market Operations, Northeast).