Intelsat’s bankruptcy court has been asked to approve bonus payments for the operator’s key staff. The court will decide on December 21st whether to grant the request.
Intelsat, in its filing earlier this week, stressed that despite the reconstruction of the company under Chapter 11, the every day work has to continue. Consequently, the KEIP scheme (Key Employee Incentive Payment) still applies.
The 2021 KEIP scheme provides the threshold, target, and maximum cumulative 2021 opportunities. Company president and CEO Stephen Spengler is up for a ‘Threshold’ base award of $2.8 million, that could rise through a mid-level ‘Target Award’ of a (total) of $5.67 million and a maximum of $8.8 million (in total) should key metrics be met.
Other key staffers can also benefit on a sliding scale ranging from $1.3 million (EVP/CFO) to a maximum of $3.9 million, and down to Intelsat’s Chief Strategy Officer receiving $135,000 at the threshold level up to $405,000 at the maximum level.
“Such award opportunities represent a reasonable, market-based approach to incentivize the 2021 KEIP Participants in accordance with their performance, and are justified under the circumstances of these Chapter 11 cases. The targeted compensation opportunities will result in the 2021 KEIP Participants receiving compensation commensurate with or below the market, on average,” says Intelsat.