WASHINGTON-Nextel Communications Inc.’s board of directors approved a $1.8 million bonus for Tim Donahue, company president and chief executive officer, and a $800,000 bonus for Tom Kelly, company executive vice president and chief operating officer, according to a Securities and Exchange Commission filing. The bonuses were based on meeting performance goals established in early 2004, with similar incentives established for 2005.
Nextel, which late last year announced plans to merge with Sprint Corp., also reported awarding deferred share awards in connection with the pending merger to a number of executives, including 75,000 shares to Kelly and executive VP and chief financial officer Paul Saleh, 25,000 shares to executive VP and chief technology officer Barry West, and 15,000 shares to senior VP and general counsel Leonard Kennedy. The shares are scheduled to vest on the second anniversary of the merger announcement if the deal is approved, or in yearly one-third installments beginning Feb. 24, 2007, if the merger is abandoned or not approved by Feb. 26, 2006.
In an unrelated announcement, Nextel said it has begun a consent solicitation with respect to outstanding Zero Coupon Convertible Preferred stock due 2013. Nextel noted that to boost participation in the consent offering, which will require at least two-thirds participation, it would provide for a consent payment of $15 per share to holders executing and delivering their consents by March 16.
Nextel also said it was making an offer to exchange all outstanding shares of preferred stock for an equal share of newly issued Series B Zero Coupon Convertible Preferred stock due 2013. Terms of the new shares will be substantially identical to terms of the outstanding shares. The exchange offer is set to expire March 31.
