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

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Posted May 5, 2012 at 5:12pm by iClarified

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

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Jean - May 6, 2012 at 8:11am

It takes a real man or woman to admit and do faults, it also takes a more stronger one to deal with the negative and positive and come through it, it's sad no matter the case maybe in this case it's PHONE SERVICE which it's a necessity for everyone and all companies are basically tapping us and getting away with it cause consumers depend on them no matter of convenience all ceo and other upper people of any company should be ashamed,if was your someone of importance all of you wouldn't be charging for a service that once and is still a necisity to all, the extras come with a price and that we pay, for the plan for a phone itself is atleast 70.00 I could go on forever ...so sad on a service that it's needed thoughout all

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Buc0727 - May 5, 2012 at 7:56pm

AT&T r scam artist sprint is keeping it live and breaking breed with the people that's cool

Buc0727 - May 5, 2012 at 7:55pm

AT&T are

Tom - May 5, 2012 at 6:25pm

Like A BOSS!!!!

Joe - May 5, 2012 at 5:49pm

Good, it's about time these overpaid CEOs cut their pay instead of the workers!

Excellent - May 5, 2012 at 5:17pm

Excellent for him to show his loyalty to his workers. Now all he has to do is get those upgrades so he can officially quick other carriers asses.

Doh! - May 8, 2012 at 2:02pm

Yep, there is nothing like a good ass quicking :-)