Sprint CEO Gives $3.25M Back to Company After Upsetting Shareholders in iPhone Deal
May 8, 2012 10:44 AM
comment(s) - last by
Sprint CEO Dan Hesse
Hesse returned the $3.25 million after previosuly excluding the financial effect of carrying Apple's iPhone when determining employee bonuses
Sprint Chief Executive Officer Dan Hesse has decided to return over $3.25 million after shareholders expressed concern with the company's recent move regarding employee bonuses and Apple's iPhone.
According to a filing with the Securities and Exchange Commission on Monday, Hesse returned the $3.25 million after previously excluding the financial effect of carrying Apple's iPhone when determining employee bonuses.
This move upset shareholders, so Hesse decided to return the money to the company.
"I do not want, nor does our Compensation Committee want, to penalize Sprint employees for the company's investment with Apple," said Hesse. "I'm hopeful that these actions will
allow the company to remain focused
on delivering the best overall customer experience in the wireless industry, which is what will serve the company best in the long run."
Sprint agreed to purchase 30.5 million iPhones for about $20 billion over a four-year period last year. In August 2011, Hesse reportedly told the Sprint board of directors that the company would likely lose on the agreement with Apple until 2014, but believed in the deal because he said iPhones were more profitable than others like Android-based phones. According to Hesse, iPhones have a "low churn rate" and iPhone users consume less data.
When the iPhone 4S first launched, which was
Sprint's first iPhone
, the carrier sold 1.8 million of the Apple smartphone. In Q1 2012, Sprint sold 1.5 million iPhones total.
"We applaud Dan for his willingness to sacrifice personal compensation in order to reduce any distraction that could negatively affect the morale and performance of the company," said Sprint Board Chairman James Hance Jr. "Dan enjoys the full support of our board of directors, and we appreciate the leadership he has demonstrated as he continues to
guide the company
through a turnaround in a difficult competitive environment."
Hesse's pay in 2011 was $11.9 million, including stock and option awards. Hesse said he plans to reduce his salary by $346,223 this year to pay back part of the iPhone bonus, and will give up $544,607 in future pay for last year's performance. The other $2 million that he's giving back will be in performance units that he was given in February.
Kansas City Business Journal
This article is over a month old, voting and posting comments is disabled
RE: You gotta like Hesse
5/10/2012 9:36:34 AM
You guys are going back and forth on CEOs compensation when, as R77 pointed out, you have no power over that. Before you even think of worrying about that, you should worry (to a MUCH higher degree) about the money and especially power that politicians have. You actually can/should do something about that.
I hope you all can agree on that.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
Sprint is Biggest Loser in Nationwide 3G/4G Speed Test
April 18, 2012, 2:17 PM
Sprint Will Offer LTE Devices in Mid-2012
December 28, 2011, 12:53 PM
Report: Sprint to Sell iPhone 5 in Mid October
August 24, 2011, 10:04 AM
Air Force Expects to Save Over $50 Million in 10 Years by Using iPads
May 17, 2013, 12:26 PM
Former Intel CEO Regrets Passing Up on iPhone Gravy Train
May 17, 2013, 11:46 AM
Intel-Based Lenovo Yoga 11 Lands, is $240 USD More Expensive Than ARM Version
May 17, 2013, 11:02 AM
Galaxy S IV Looks to Hit 10 Million Sales in Just Four Weeks
May 17, 2013, 10:12 AM
Nintendo Wii U: No EA Games for You!
May 17, 2013, 8:35 AM
Quick Note: CyanogenMod Hits 5 Million Users
May 16, 2013, 1:42 PM
Most Popular Articles
Report: Microsoft Eyes Return to "Dying" Windows 7 Path After Windows 8 Flop
May 13, 2013, 9:50 AM
Bill Gates Gets Teary-Eyed While Discussing Steve Jobs, Shows Off Life-Saving Tech on 60 Minutes
May 13, 2013, 12:30 PM
Windows 8.1 Will Be Free; Microsoft Holds Onto Struggling ARM Variant
May 14, 2013, 2:57 PM
Google Announces "Pure" Galaxy Nexus S4 for $649, Android Updates
May 15, 2013, 1:42 PM
U.S. Federal Traffic Board Wants to Make Drunk Driving Threshold Far Harsher
May 15, 2013, 11:32 AM
Latest Blog Posts
Parents of Pre-Teen Drivers Commonly Practice Distracted Driving Says Study
May 9, 2013, 7:16 AM
Apple's iOS 7 Running Into Internal Delays Due to Massive Overhaul
May 1, 2013, 4:26 PM
Elon Musk Willing to Spend More Money on Widening of 405 Freeway
Apr 26, 2013, 7:28 PM
New $100 Bill Due in October
Apr 24, 2013, 11:52 PM
Volkswagen Shows off iBeetle in Shanghai
Apr 22, 2013, 9:29 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information