UNITED STATES CELLULAR CORPORATION (NYSE:USM) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02. Departure of Directors or Certain Officers; Election
of Directors; Appointment of Certain Officers; Compensatory
Arrangements of Certain Officers.
to Item 5.02(e) of Form 8-K, United States Cellular Corporation
(U.S. Cellular) is filing this Form 8-K to report the amount of
bonuses paid to its named executive officers in 2017 with respect
to 2016 performance.
Officers are not entitled to any bonus unless and until paid.
In accordance with Instruction 4 of Item 5.02, the below persons
include the persons who were identified as named executive
officers in U.S. Cellulars most recent proxy statement filing
with the Securities and Exchange Commission on April 12, 2016,
and who will continue to be named executive officers in the 2017
proxy statement.
The following amounts ofbonuses were paid on March9, 2017
relating to 2016 performance to the below persons:
|
Kenneth R. Meyers |
Steven T. Campbell |
Jay M. Ellison |
Michael S. Irizarry |
Deirdre C. Drake |
||||||
|
Bonus Paid in 2017 for 2016 Performance |
$ |
1,007,200 |
$ |
490,000 |
$ |
550,000 |
$ |
465,000 |
$ |
274,000 |
The above shows the entire amount of the bonus paid, whether or
not some or all of such bonus has been deferred and whether or
not some portion of such amount will be reported as non-equity
incentive plan compensation in the 2017 proxy statement.
U.S. Cellular established guidelines and procedures for awarding
bonuses to the President and CEO, Kenneth R. Meyers. These
guidelines and procedures were filed by U.S. Cellular as Exhibit
10.2 to U.S. Cellulars Form 8-K dated August 19, 2014.
The above bonus payments to the other named executive officers
were made to the U.S. Cellular 2016 Executive Officer Annual
Incentive Plan, as approved both by U.S. Cellulars Chairman and
by U.S. Cellulars President and Chief Executive Officer. Neither
the Chairman nor the President and Chief Executive Officer
participate in such plan. A copy of this plan was filed with the
SEC as Exhibit 10.1 to U.S. Cellulars Form 8-K dated June 7,
2016. This plan provides that adjustments to the plan may be made
by the Chairman. The above bonus payments on March 9, 2017
reflect adjustments to the targets for performance measures as
approved by the Chairman that were made to the plan.
The following are the final targets and performance measures that
were considered for purposes of determining the bonus amounts for
the named executive officers other than Mr. Meyers:
|
Performance Measures |
Component Weighting |
Overall Plan Weighting |
|
Consolidated Total Revenues |
35% |
21% |
|
Consolidated Adjusted Earnings Before Interest, Taxes, |
30% |
18% |
|
Consolidated Capital Expenditures |
20% |
12% |
|
Customer Engagement |
10% |
6% |
|
Network Perception |
5% |
3% |
|
Company Performance |
60% |
|
|
Chairman Assessment on Strategic Initiatives |
10% |
|
|
Individual Performance |
30% |
|
|
Total |
50% |
The bonus payments to the named executive officers other than Mr.
Meyers under this plan reflect U.S. Cellulars company performance
in 2016 of 130.7% and individual performance and other factors,
as set forth in this plan.
About UNITED STATES CELLULAR CORPORATION (NYSE:USM)
United States Cellular Corporation (U.S. Cellular) is a provider of wireless telecommunication services. The Company operates all of its wireless operating markets are in the United States. U.S. Cellular provides service to postpaid and prepaid customers from a range of demographic segments. The Company focuses on retail consumers, government and small-to-mid-size business customers in vertical industries, such as construction, retail, professional services and real estate. The Company offers a range of wireless devices, such as handsets, modems, mobile hotspots, home phones and tablets for use by its customers. U.S. Cellular offers wireless devices that are compatible with fourth generation long term evolution (4G LTE) and third generation (3G) networks. U.S. Cellular offers a range of accessories, such as carrying cases, hands-free devices, batteries, battery chargers, and memory cards to related consumer electronics, such as headphones, speakers and Bluetooth keyboards. UNITED STATES CELLULAR CORPORATION (NYSE:USM) Recent Trading Information
UNITED STATES CELLULAR CORPORATION (NYSE:USM) closed its last trading session down -0.12 at 36.30 with 161,886 shares trading hands.