Sprint CEO’s Compensation Rose 31% to $11.9 Million in 2011
By Olga Kharif - Mar 27, 2012 3:51 AM GMT+0700
Sprint Nextel Corp. (S) the third- largest U.S. wireless carrier, boosted Chief Executive Officer Dan Hesse’s compensation 31 percent last year as the company reported its fifth straight annual loss.
Hesse received compensation valued at $11.9 million in 2011, when the company’s shares tumbled 45 percent. That compared to $9.07 million in 2010, according to a regulatory filing today. The executive also received stock awards worth $3.22 million and non-equity incentive plan compensation of $4.84 million.
Sprint last month said it excluded the cost of the Apple Inc. (A) IPhone from its 2011 bonus calculations for eligible employees. The Overland Park, Kansas-based carrier reported widening losses last quarter -- its first offering the IPhone -- signaling the best-selling device may not be helping Hesse turn around the business.
The company sold 1.8 million iPhones in the period, fewer than some analysts projected and trailing larger rivals AT&T Inc. (T) and Verizon Wireless. The device also ate into Sprint’s margins by boosting its subsidy expenses by about 40 percent.
Sprint and competitors sell the iPhone at a loss to get consumers to sign up for multiyear contracts.
In the fourth quarter, Sprint’s net loss widened to $1.3 billion, or 43 cents a share, from $929 million, or 31 cents, a year earlier.
Sprint rose 4.4 percent to $2.86 at the close in New York. The shares have gained 22 percent this year.
Should we be surprised????...This is nothing more than Sprint continuing to reward the culture of failure that Sprint has been built on.
As for investors it is just another kick in the balls....This guy should have been shown the door over 3 years ago.....Never seen anything like this at the CEO level for any company I have invested in.
For the dumb little kid sitting out on the street curb, something doesn't make sense. The company is and has been losing money and the boss, CEO, get a big raise. The little kid always thought you got a pat on the back for doing something good. Just treading water is nothing great.