T-Mobile CEO John Legere given $66.5 million compensation package following Sprint merger announcement

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John Legere gets a lot of credit for helping to turn T-Mobile into the company it is today, rolling out Un-carrier moves and making T-Mo more competitive. If you’ve ever wondered what kind of compensation Legere gets for transforming T-Mobile, some details on that have now come out.

T-Mobile granted Legere a compensation package worth $66.5 million last year, most of which came from a stock award that was given to him the day that T-Mo’s proposed merger with Sprint was announced. That payout is tied to Legere sticking around to see the merger through completion and to T-Mobile’s stock return, but he can also get his award if the deal fails by remaining as T-Mo CEO for another year and getting the carrier’s shares to outperform other firms.

T-Mo’s CEO will get around 600,000 shares of T-Mobile if its stock return over the coming years falls in the 50th percentile of a group of other carriers and tech companies. That payout is worth around $44 million. If T-Mobile outperforms more than half of its competition during that time, though, he’ll get up to twice as many shares. Other T-Mo execs are getting similar, but smaller, payouts.

In addition to those shares, Legere pulled in $8 million in salary and bonuses and around $14.4 million worth of equity awards.

Legere joined T-Mobile as its new CEO in 2012, and since then he’s helped to roll out major Un-carrier moves like eliminating contracts and its single T-Mobile One unlimited plan. While some feel that T-Mobile’s recent Un-carrier moves are underwhelming, there are moves that’ve helped change the industry. This week Legere revealed that T-Mobile continues to grow, with 24 straight quarters of adding more than 1 million customers to the subscriber base.

Source: Bloomberg

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  • SurvivingSunnyvale

    And once the merger is complete, the layoffs will begin.

    • Mike

      More jobs will be saved by the merger if Sprint ends up going bankrupt.

      • Fabian Cortez

        More jobs will be saved by the merger if Sprint ends up going bankrupt.

        Since when is T-Mobile responsible for Sprint’s poor business decisions?

        • monkeysoup

          Ever since Sprint and T-Mobile decided to merge.

        • marque2

          It’s not but if it does buy the company those Sprint jobs will be saved – otherwise next economic downturn and Sprint is gone, if not before then.

      • VernonDozier

        I agree!

        Under Chapter 7, Sprint will have an opportunity to reorganize, sell assets and renegotiate contracts with all creditors (including Marcello’s BrightStar). Sprint will also walk away with a 3-year roaming agreement on T-Mobile’s network, as described in the first video announcement about the attempt to merge.

        Still, it wasn’t long ago, perhaps about a decade, when Sprint was structured as a series of smaller companies like Alamosa PCS, Roberts Wireless Communications L.L.C. and Washington Oregon Wireless L.L.C. Then Sprint bought them out.

        Back then, each local company had a territory and capability to address network facing-issues. Decisions for network capital investment was done on a local level.
        Only marketing and customer service was done out of Kansas. This was likely to ensure a consistent customer experience.

        Instead of continuing that method of business, everything became centralized when Sprint bought the regional companies. Instead of continuing to build and invest into capacity for customers, Sprint instead focused almost exclusively on handset pricing.

        • marque2

          Not sure what you are talking about. Sprint would try Chapter 11 first, which is a reorg with deptors get part of the debt dissolved. Chapter 7 is a liquidation – no more Sprint. That is usually done if it is determined Chapter 11 is not an option, or the debtors prefer that over owning a stake in the new company.

      • SirStephenH

        Sure… We should base all decisions upon theoreticals.

  • Philip

    Is this a outrageous compensation?

    • Jeff Thompson

      No. He basically saved T-Mobile, and not just everyone can do such a thing. Pro athletes create far less value.

      • Dernvi Mebna

        I disagree with the pro athelete comparison 100%. For the NBA at least, their salary comes directly from the BRI (Basketball Related Income), they get exactly what their worth.

        Jon deserves his money as well.

        • Jeff Thompson

          I actually agree with you also, I was talking about ‘social value’ in the prevalent leftist thinking.

    • (J²)

      No, he’s the CEO and there’s CEO’s at other companies (some of which are smaller) that are raking in more money even with tanking performance.
      I do appreciate that John Legere pulls most of pay from bonuses and stocks (basically the success or failure of the company).

  • Peter Bergonzi

    “While some feel that T-Mobile’s recent Un-carrier moves are underwhelming, there are moves that’ve helped change the industry.”
    I don’t see that he has any reason to stop.

  • Fan_Atl77

    Simply said, very Nice compensation…

  • Android_God

    Please pray for John! I’m sure he’s suffering!

    • riverhorse

      With some of the commentary here, it’s a wonder he hasn’t succumbed to a stroke.

  • marque2

    You guys are dopes. Here is a guy who took a failing company, Deutche Telecom wanted to get rid of or shut down and tripled it’s size in 10 years. He deserves twice as much money as far as I am concerned.

    Why do you millennials hate companies so much? The reason we give them money is because they do good things for us. It isn’t a conspiracy.

    • SirStephenH

      Yes he deserves compensation but there’s a point at which it’s too much.

      Imagine how much more competitive and liked companies would be if they stopped giving insane amounts of money to CEOs and other top executives and instead applied it to pay increases to all lower paid employees or towards decreased consumer prices.

      • riverhorse

        66 million is an inconsequential drop in the bucket. It’s out of a revenue of almost 50 BILLION yearly.
        IF by chance Sanders, Cortez, Warren et al got a law passed say, taking away Legere’s 66 million away(leaving him a half million as spare change) and ordering it be equally redistributed amongst each of TMO’s almost 50K employees, it would amount to the grand sum of twenty-seven dollars a week.
        They would then say, this is nothing…and all human beings are equal. So henceforth, all employees will make the same as Legere’s (remaining) half million. Half million plus matching tax deduction contributions, health plan, tuition reimbursement, sick pay, generous family leave time and pension obligations is about 3/4 million total per employee?…Total = almost 40 BILLION?.

        Give Caesar what is Caesar’s, give God what is God’s, give Legere what is Legere’s, give a drone what is a drone’s.

        Generally speaking, have seen minimum wage go from $7 to $15 in no time(so better company entry-level closer to $20 or more). But nothing else has seemingly changed. Customer service is not markedly better- no one is taking Miss Manners / Charm School courses, Employee turnover is still high.

  • CupcakeBandit

    He deserves more

  • SirStephenH

    $66.5 million? Time for retirement.

  • RighTUAre!

    Mr. Legere works very hard. He is the iconic T-Mobile brand.
    He deserves such a big pay and hope he continues to lead T-Mobile for a long time.