Intelsat’s most senior staff received good news on December 22nd when the company’s bankruptcy court approved the request for a series of Key Employee Incentive Payments (KEIP) for 2021. But the court made some major adjustments to the core requests.
The total three tier KEIP plan is trimmed downwards to $6,720,038 for the lower ‘Threshold’ incentive tier, then $13,440,075 for the higher ‘Target’ tier, and finally $19,003,606 under the KEIP ‘Stretch’ performance level.
The highest reward level (‘Stretch’) now requires Intelsat to achieve EBITDA revenues of $256.5 million, $255.6 million, $255.1 million, and $250.8 million in the first, second, third, and fourth quarters, respectively.
The recently acquired Gogo airline connectivity business is also included, and its ‘Stretch’ targets increased to $57.4 million, $65.3 million, $76 million, and $92.7 million in the first, second, third, and fourth quarters, respectively.
Other important key target levels were also set by the bankruptcy court and include performance achievements for the transition of C-band frequencies under the FCC’s migration plan.
If the above targets are met then Steve Spengler (President & CEO) will receive $2.25 million under the ‘Threshold’ level, $4.5 million under the ‘Target’ level and $6.345 million under the maximum level. Other C-class executives get smaller pay-outs. For example, the CFO will receive $1.3 million, $2.6 million or $3.666 million under the 3 target options.