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Sprint CEO Cuts Pay By $3.25 Million Due to High iPhone Subsidy Costs

Posted May 5, 2012 at 5:12pm by iClarified · 9063 views
Sprint CEO Dan Hesse agreed to cut $3.25 million from his pay after shareholders complained the formula used to calculate his salary did not factor in the high cost of buying millions of iPhones, reports the WSJ.

Mr. Hesse, in a letter filed with the Securities & Exchange Commission Friday, said he was voluntarily cutting some short- and long-term bonuses as well as some stock awards.

The action by Mr. Hesse is the latest sign carriers are bridling at the high price of the iPhone. Sprint, AT&T and Verizon Wireless have been heavily promoting alternatives to the roughly $600 handset, such as devices from Samsung Electronics Co., Nokia Corp. and HTC Corp.


"I do not want, nor does our compensation committee want, to penalize Sprint employees for the company's investment with Apple," Mr. Hesse said.

Other Sprint officers are not planning to voluntarily take similar pay reductions, said a Sprint spokesman.

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