Verizon Communications announced the remuneration to its new CEO Hans Vestberg and chairman Lowell McAdam.

Hans Vestberg, who was the president and CEO of telecom equipment maker Ericsson during 2010-2016 and its CFO during 2007-2009, joined Verizon in 2017 as president and CTO.

Verizon, which competes with Charter Spectrum, among other telecom operators, on June 7 in a statement shared with the SEC said Hans Vestberg will be receiving base salary of $1,500,000. His target short-term incentive opportunity will increase from 150 percent to 250 percent of base salary, and his target long-term incentive opportunity will increase from 600 percent to 800 percent of base salary.

Verizon said Hans Vestberg will receive a special one-time equity award with a grant date of August 1, 2018, with 100 percent of the award opportunity in the form of performance stock units (PSUs). The Board approved the special award to Hans Vestberg to provide an additional one-time incentive to reward performance that creates long-term shareholder value.

The PSUs represent shares of Verizon stock that may become payable after the completion of a 5-year performance cycle ending on July 31, 2023, provided that Hans Vestberg remains actively employed throughout the cycle.

The number of PSUs that vest at the end of the five-year cycle will be determined based on Verizon’s average annual return on equity (ROE) during the performance cycle. The PSUs will not vest unless Verizon’s average annual ROE meets the minimum threshold percentage of 18 percent. A maximum of up to two times the nominal number of PSUs granted will vest if Verizon’s average annual ROE is at least 38 percent at the conclusion of the performance cycle.

The value of each PSU is equal to the fair market value of a share of Verizon’s common stock on the date of the grant and will change as the value of Verizon’s common stock changes.

All PSUs that vest at the end of the five-year performance cycle, including accrued dividend equivalents on the vested portion of the grant, will be settled in shares of Verizon common stock.

The grant agreement requires that Hans Vestberg hold such shares for two years following the vesting date. If 100 percent of the PSUs vest, based on Verizon’s closing stock price on August 1, 2018, the PSUs would have a value of approximately $10 million, plus accrued dividends.

Lowell McAdam, as non-executive chairman, will receive the compensation paid to all non-employee directors of Verizon, including an annual cash retainer of $125,000 and an annual equity award valued at $175,000 on the date of grant. In addition, Lowerll McAdam will receive an annual non-executive chairman retainer of $200,000 in cash.