AT&T senior executives will get $31 million if SBC deal goes through and the new parent decides to bid adieu to Ma Bell’s senior executives. In addition, FCC has started a 180 day public comment period and the merger will be consummated in early 2006 if all goes according to plan. There is a plan to create a $100 million pool to retain some of the senior executives.
According to SEC filings had David Dorman not been made the president of SBC after the merger, he would have been paid another $10 million in addition to about $18 million in severance. Dorman will have early access to $17.7 million worth of options and shares which he would have received over the next several years, based on the $19.71 value assigned to AT&T’s shares in the SBC merger agreement. He will not get $7 million worth of performance-based stock.
AT&T President William Hannigan will get $6.5 million in cash and early “access to restricted and performance-based shares worth nearly $10 million based on the deal price.” Others getting the big pay out include Thomas Horton, the chief financial officer who gets $4.7 million, and Hossein Eslambolchi, the chief technology officer who gets $4 million.
If these guys get hired by SBC, well there is no money for them.