| Posted on Fri, Aug. 19, 2005 | ||||||||||||
 Sprint execs exercise options, gain millions By DAVID HAYES The Kansas City Star While Sprint and Nextel celebrated their merger this week, a few top executives sold more than $35 million of stock. On Wednesday, Gary Forsee, Sprint’s chief executive, exercised options on 626,250 shares — acquiring 417,500 shares at $11.87 and 208,750 more at $8.47. Forsee sold those shares for $26.50, for a total of $16,595,625, according to documents filed Thursday with the Securities and Exchange Commission. Forsee cleared about $9.8 million on the transaction. According to the documents filed with the SEC, Forsee still owns 762,950 shares. Forsee said this week that the company, which has seen its share price more than double since he became CEO in March 2003, is the best positioned for growth in the telecommunications industry. The combined Sprint Nextel Corp. is competing primarily with fellow wireless giants Verizon Wireless and Cingular. “There are lots of opportunities for investors to look at Sprint,” Forsee said at a news conference this week at the New York Stock Exchange marking the completion of the merger. “This is going to be a must-invest play for investors who are looking for growth.” Two other Sprint officers also took the opportunity to sell while Sprint’s stock price was near or over $26 a share. On Tuesday, Thomas Kelly, Sprint’s chief strategy officer, exercised options at prices ranging from $3.86 to $22.62. He sold 625,042 shares at $26.02 a share, for a total of $16,267,468. Kelly cleared about $6.4 million on the transaction. He currently owns 226,939 shares. Also on Tuesday, William Arendt, Sprint’s controller, exercised options on 160,080 shares at prices ranging from $3.86 to $21.03. He sold those shares for $25.87 a share, for a total of $4,142,566. Arendt cleared about $2.02 million in the transaction and now owns 46,702 shares. In another document filed with the SEC on Thursday, Sprint set new compensation for outside directors on the Sprint board. Outside directors will receive annual cash retainers of $70,000 plus $2,000 per meeting. The chairmen of key committees, such as the audit committee, will receive additional retainers ranging from $10,000 to $20,000. The outside directors also are to receive $100,000 in restricted stock units that vest a year after they are granted. The directors also will receive telecommunications services and products. Sprint Nextel shares closed Thursday at $26.05, down 30 cents. First glance ■ Several Sprint executives make millions of dollars by exercising stock options and then selling their shares, SEC files show. ■ Gary Forsee, Sprint’s chief executive, clears about $9.8 million in his transactions. | ||||||||||||
This comes one day after it was announced that Sprint would no longer offer a pension plan to it's employees. Other benefits were put in place to offset, but it's difficult to determine if they are equivalent... Regardless, I doubt these executives will have any problems with retirement.
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