FairPoint Communications (Nasdaq: FRP) has renewed its employment agreement with current CEO Paul Sunu for three years, according to a filing the telco made with the Securities and Exchange Commission (SEC).
Sunu (Image source: FairPoint)
Under the terms of the agreement, Sunu will serve as CEO of FairPoint from April 9, 2013 to August 31, 2016 "unless the agreement is terminated sooner."
"Mr. Sunu's term of employment under the Employment Agreement shall be extended automatically for successive one-year terms unless notice of termination is given by either the Company or Mr. Sunu prior to the expiration of the term of employment (including any extension thereof) pursuant to the terms of the Employment Agreement," FairPoint said in the SEC filing. "In addition, under the Employment Agreement, Mr. Sunu shall be nominated to the Board (and shall so serve if elected)."
He will receive an annual base salary of $800,000, which will be reviewed every year by the telco's compensation committee and can be increased after consulting with independent directors on the board.
His target level bonus under the annual incentive plan is 100 percent of the base salary payable to him during the applicable performance period. He is also eligible for a maximum bonus of up to 150 percent of his base salary in addition to being able "to participate in the benefit and other plans made available generally to the Company's other senior executives, including but not limited to the FairPoint."
In 2012, Sunu earned $4.2 million in total compensation, including his baseline salary of $750,000. Other forms of compensation in 2012 included a $157,220 bonus, $1 million in stock options, $2.2 million awarded as stock and $103,783 from other types of compensation.
- see the SEC filing
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