Speedcast gets approval to implement key employee incentive plan

By Sarah Lizee

Olympia, Wash., Dec. 4 – Speedcast International Ltd. secured court approval to implement a dual-path key employee incentive plan, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the KEIP participants will be eligible to collectively receive around $6.1 million if they meet certain operational performance targets and a maximum of $7.6 million if they exceed those targets.

In addition, to account for the possibility of a sale or strategic transaction, the KEIP is structured to toggle to incentive awards of about $6.1 million if a target transaction value of $500 million is realized in a sale or strategic transaction and about $12.2 million if a transaction value equal to or greater than $550 million is realized, in either case offset by any operational KEIP awards earned by the participants.

“The dual-path structure of the KEIP and the offset mechanism employed in the toggle KEIP ensures that the KEIP participants remain agnostic to a determination to pursue a sale or strategic transaction at a later date,” the debtors said in their motion.

“The operational KEIP rewards the KEIP participants for driving profitability, while the toggle KEIP would incentivize the KEIP participants to conduct a robust marketing process that yields the highest and best offer from interested market participants and remain motivated to in the debtors pursue a strategic transaction.”

The KEIP participants include the company’s president and chief commercial officer, chief financial officer and executive vice president, chief technology officer, executive vice president and chief administrative officer, executive vice president and general counsel and senior vice president for capacity management and network planning.

Speedcast is a Sydney, Australia-based provider of remote communication and IT solutions. The company filed bankruptcy on April 23, 2020 under Chapter 11 case number 20-32243.

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