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Sprint CEO Pay Balloons Despite Company's Struggles
by Karl Bode 10:36AM Thursday Apr 17 2014
While AT&T and Verizon dominate the industry and T-Mobile has been receiving consumer adoration for doing things a little bit differently, Sprint has been struggling to not only keep users, but build a decent network and brand identity. Most LTE tests place Sprint at the very bottom of the barrel in speed and latency, and the company always seems to be promising that a great network is just around the corner.

With Sprint flailing, it's apparently a perfect time for Sprint CEO Dan Hesse's pay to skyrocket. According to recent SEC filings, Hesse's pay ballooned from $11 million in 2012, to more than $46 million in 2013. Why? Because the company was so "successful" last year:
quote:
The carrier notes in its SEC filing that 2013 was "one of the most eventful years in Sprint's history." Last year SoftBank completed its $21.6 billion purchase of 80 percent of Sprint, Sprint bought partner Clearwire, shut down its Nextel iDEN network and started deploying its tri-band LTE Sprint Spark service.
Hesse's $46 million in 2013 compensation tops AT&T (CEO Randall Stephenson made $23.24 million), Verizon (CEO Lowell McAdam made $15.82 million in 2013) and presumably T-Mobile (who hasn't filed their SEC docs yet).

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seamore
Premium
join:2009-11-02

But

But, but, but...He's the CEO!!!!!
He deserves every penny and worth every penny that the board pays him
LTE4LIFE

join:2013-02-28

2 recommendations

Re: But

Twisted logic in this society of sycophants... Those that do no work get all the money and rewards for being at the top. Those that actually do the work to keep the company growing get jack crap.
Oceanside426

join:2012-07-15
Oceanside, NY

Re: But

So true. I hate it. Really America Stop Being Such Sheep...
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Those working in the C suites do plenty of work. Just because they are climbing poles or driving trucks doesn't mean they aren't helping the company prosper.

intok

join:2012-03-15

Re: But

Yeah, because everything would be just fine if there was no linemen to go out and service and install equipment...

Go look up how a CO-OP works, they don't have a CEO or a board of directors, all they have are the guys on the ground, because they are the only ones necessary for making the company work. The corporates don't do anything to actually facilitate the companie's ability to function, but boy can they spend up all of the money so that the company can get sold off to their buddies!
--
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openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: But

said by intok:

Yeah, because everything would be just fine if there was no linemen to go out and service and install equipment...

Definitely not what I wrote.
said by intok:

Go look up how a CO-OP works, they don't have a CEO or a board of directors

Show me a functional coop that doesn't have a management or governance structure.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: But

The point is the pay for that governing structure is not so lopsided and determined by that exact same governing structure.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: But

That's not what intok See Profile stated. Also, I disputed LTE4LIFE See Profile's claim that executive management teams don't do work. I won't dispute the silliness of some executive pay packages, but I will argue all day long against claims that they don't do work.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

Re: But

said by openbox9:

That's not what intok See Profile stated. Also, I disputed LTE4LIFE See Profile's claim that executive management teams don't do work. I won't dispute the silliness of some executive pay packages, but I will argue all day long against claims that they don't do work.

Well thank goodness we have people like you to protect the reputation of those hard-working, poor souls.

God speed openbox. May your noble mission continue without interruption.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: But

And I guess we should be thankful that you're fighting the fight for the "little person"? What kind of silly comment is that?

intok

join:2012-03-15

1 recommendation

Re: But

It's not so silly when you are looking at executive pay that is is at 1000:1 to the pay of the rank and file employee.

You can't say with a straight face that they are worth a thousand of their regular employees.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: But

I won't dispute pay disparities, just as you shouldn't dispute executives don't work or don't provide a valuable function.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
You don't seem to be disturbed much by the swindling of states like New Jersey out of statewide FTTH by companies like Verizon. Certainly not enough to post there. Your comments are always about defending the executive suite, as if they need your help.

From where I'm standing there seems to be a massive imbalance of power. Your derided "little guy" is on the lighter side of the see saw.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: But

Swindling out of FTTH? Did the agreement state all NJ residents were getting FTTH? When do we start blaming the other half of these dealmakers and holding them accountable? Good for the goose, good for the gander?

Anyway, back on the topic of this thread. Executives work and provide value. Are they always worth what they're paid? Definitely not. The "little guy" works and provides value as well. Are they underpaid? Sometimes, maybe. I'm not as evil as you think just because I have a different perspective.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1

1 recommendation

Re: But

The other half of the deal makers are making corrupt decisions precisely *because* of the corporate lobbying and revolving door. How can you focus on the regulators while ignoring the guy pulling the strings on the puppets? That's just being willfully ignorant.

CEOs are paid what the board decides to pay them. Those board members often sit on other boards, and of course nominate CEOs from their own members. The scale is rigged.
openbox9
Premium
join:2004-01-26
Germany
kudos:2

Re: But

said by sonicmerlin:

The other half of the deal makers are making corrupt decisions precisely *because* of the corporate lobbying and revolving door.

No. They're making deals because they lack integrity and the moral fortitude to do what they said they'd do when we voted for them....or voted for those that appointed them. For that they are solely to blame and should be held accountable for their (in)actions. Or else we can shut up and continue our apathy and blame game toward businesses that are by definition incapable of having integrity or morality. Society doesn't vote private businesses into being, but it sure does with their elected officials/representatives
nonymous
Premium
join:2003-09-08
Glendale, AZ

yes Sprint sucks and Tmobile is great.

There is a current timeline. If not met Hesse may not be here next year.
Just google, the timeline is not this week but there is a significant timeline for end of year and mid next year.
The network team has been shuffled, high level managers replaced. If Hesse does not produce he will be gone also.

tnroroc
Let's Rock

join:2001-04-25
New Jersey

Re: yes Sprint sucks and Tmobile is great.

That is all well and good, but he will be out AFTER his bump in pay. Where do I signup for a job like that?
--
rok - Enjoy this game called life, nobody is actually keeping score.

amarryat
Verizon FiOS

join:2005-05-02
Marshfield, MA

Not for long

Softbank CEO will probably end that this year. He couldn't control last years pay.

n2jtx

join:2001-01-13
Glen Head, NY

Re: Not for long

said by amarryat:

Softbank CEO will probably end that this year. He couldn't control last years pay.

True but there may be contractual obligations that he may have to honor or pay even more to break.

Still not surprised that the worst performing cellular carrier has the highest CEO pay. Makes sense :/
--
I support the right to keep and arm bears.
Kearnstd
Space Elf
Premium
join:2002-01-22
Mullica Hill, NJ
kudos:1

Re: Not for long

the sad thing is no company will tie a CEO to the success of the company. meaning if the company goes down in flames so does the CEO pay.

Because no CEO would join a company where if it went into Chapt. 11 their golden parachute ceases to exist and if the numbers are down they do not get paid as much.
--
[65 Arcanist]Filan(High Elf) Zone: Broadband Reports
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Well, he did successfully navigate to being mostly acquired. How much of his compensation accounts for that?

atuarre
Here come the drums
Premium
join:2004-02-14
Conroe, TX

2 recommendations

RE

They got that money from Softbank and now compensation is ballooning. That is where the money is going, not into network investment and infrastructure but into the pockets of the executives.

PayoffbySon

@comcast.net

This was Hesse's bonus for pushing thru sale to SoftBank

This was the payoff to Hesse for pushing thru the sale of Sprint to SoftBank - nothing more than that.

THXULTRA

@mooseintl.org

Anyone else sick of the T-Mobile is so great articles all the time

Seems lately T-Mobile can't go wrong. They raise the price of there unlimited plan it is seen as great. They release a crappy 500meg plan everyone says what a great deal it is. They change the jump plan from every 6 months to a year and they are still great. Corporate discounts ya those are gone too. While T-mobile has done some good things in the past year (no overages on data) they have had negatives but no bad press. Try using there data network at Disney World it chokes. Sprints Framily plan is a much better deal with the extra $20 unlimited data then T-Mobiles unlimited plan which is now up to $80 a month. With one phone on my plan with sprint I can pay $45 a month for unlimited data, text and talk that would cost $80 on t-mobile... Can sprints network use some upgrades you bet but so can t-mobiles.

MDA

join:2013-09-10
Minneapolis, MN
Reviews:
·Comcast

Re: Anyone else sick of the T-Mobile is so great articles all the time

At least T-Mobile has a "Nationwide" network...

Sprint is northeast, southern/texas area, and Nevada/california. Its spotty as hell. The price you pay for both is what you are getting.

I'll take the more disruptive and better coverage network of the two.
biochemistry
Premium
join:2003-05-09
92361

Re: Anyone else sick of the T-Mobile is so great articles all the time

You are forgetting the Midwest. It is headquartered in Overland Park, KS not too far from Kansas City.
--
Unicorns! Show ponies! Where's the beef?!

MDA

join:2013-09-10
Minneapolis, MN
Reviews:
·Comcast

Re: Anyone else sick of the T-Mobile is so great articles all the time

said by biochemistry:

You are forgetting the Midwest. It is headquartered in Overland Park, KS not too far from Kansas City.

I had 1-0 bars in Minneapolis MN. maybe central/midwest, but not northwest.

SteelerRaw

@72.5.190.x
Based on my experiences with both, Sprint's network is more nationwide than t-mobile's.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
said by MDA:

At least T-Mobile has a "Nationwide" network..

It does? Driving around VA and TX suggest otherwise.

scott2020

join:2008-07-20
MO
T-Mobile's coverage is worse that Sprint's, and T's is mostly EDGE which in this day and age is pretty much useless.

But Sprint's 3G runs at less than EDGE speeds most of the time, so there's that...
--
+++ATH0
biochemistry
Premium
join:2003-05-09
92361
A lot of mobile companies choke in crowded areas. I can't get Verizon to do jack inside an NFL stadium
--
Unicorns! Show ponies! Where's the beef?!

thxultra

@mooseintl.org

Re: Anyone else sick of the T-Mobile is so great articles all the time

I haven't been able to get any network to respond well inside the united center. Disney World however Verizon didn't miss a beat and T-Mobile was useless for data.

bigballer

@205.214.216.x
cause sprint's framily plan isn't even that cheap. Pay 220 with sprint framily or 110 with tmobile. Both give unlimited talk, text, 1 gb of data per user.

BUt which plan has international data and international texting?

••••••••

SteelerRaw

@72.5.190.x

In the interest of transparency

Before this devolves...

quote:
The biggest chunk of his pay — $34 million, about 70 percent — came as Sprint stock, restricted as to when Hesse can sell it, and options to buy more shares of the wireless company.

He won’t collect unless he’s still there when the awards “cliff vest” the day after his employment contract runs out in mid-2018.

“In effect, there’s no value (to Hesse) until that occurs,” said Paul R. Dorf, managing director of Compensation Resources Inc. in New Jersey.
Read more here: »www.kansascity.com/2014/03/07/48···link=cpy

Nick5

@verizon.net

Harder Job

While I'm not completely in the "he should get a ton of pay camp", being CEO of a struggling company can be significantly harder than keeping a successful one going. It's much easier for a plane to cruise than to take off.

Probitas

@teksavvy.com

Re: Harder Job

It was sold for the better part of stock, and more than likely a lot of management and employees are going bye bye, so if anything he's overseen the dismantling of the company, not the survival. Assume at some point the rest will get swallowed up and it will be totally gone. If not on paper, in spirit.

Bill Van

join:2013-02-07
Norfolk, VA

Sprint's parent Softbank needs to sell Alibaba to fund Sprint

Softbank's is expected to reap a $30 Billion windfall if it sells it's stake in Alibaba after the IPO. Not bad from a $200 million investment by Softbanks CEO Son. Softbank needs to flood Sprint with a "Money's no Object" mentality so Sprint can turn thing around for good.
wkm001

join:2009-12-14

WOW!

He makes more in a day than I make in a year. Actually 2.5X more in a day than I make in a year. Impressive...

cb14

join:2013-02-04
Miami Beach, FL

Re: WOW!

45 years ago the CEO pays were a small fraction of what they get today and they turned most of it back to the society in the form of high taxes and high capital gain taxes. they did not perform any less than these days.
15444104
Premium
join:2012-06-11

CEOs need to be off shored!

If you were ANY of the "rank and file" employees that actually get the work done at a company and you FAILED TO PERFORM YOU WOULD BE FIRED!!!!!
Yet for his non-performance, why is a CEO not held to the same standard???

HYPOCRISY!!!!!!!!!!!!!!!!!!

No wonder the morale in the workplace is at an all time low. Forget about how the typical CEO in the USA today makes over 250 times what the average employee makes. And
NOT ONE OF THEM IS WORTH ANYTHING CLOSE TO THAT. AN OUTRAGE!!!