WASHINGTON-Nextel Communications Inc. President Timothy Donahue and Sprint Corp. Chairman Gary Forsee are eligible for major bonuses following the completion of their companies’ proposed $35 billion merger later this year.
According to documents filed Tuesday at the Securities and Exchange Commission, Donahue and Forsee each could be paid a minimum performance-based bonus of $10 million in the first year following the closing of the transaction and another $10 million bonus each the following year. The SEC filings amend both executives’ employment agreements with their respective companies.
The Justice Department and Federal Communications Commission are expected to approve the deal.
Donahue, who would become chairman of Sprint-Nextel, would have his annual salary increased from $1.2 million to $1.4 million. In addition, Donahue could receive more than $4 million in separate bonuses during the next two years.
Forsee, set to become president and chief executive officer of Sprint-Nextel, also would pull down an annual salary of $1.4 million and be in line for more than $4 million in additional bonuses in 2005 and 2006.
