Photo: Illustration: Ellis Hamburger
Sprint Chief Executive Dan Hesse will take a pay cut of $3.25 million after shareholders reacted to what they saw as excessive pay in the face of middling results.Sprint management has aggressively been working to turn the company around, and is betting that it can retain and grow its post-paid user base now that it has the iPhone.
But the iPhone will cost Sprint more than $15.5 billion over the next few years as the company purchases millions of Apple’s devices.
“As you know, the Company has received feedback from some shareholders relating to the discretionary adjustment the Compensation Committee made under the incentive plan payouts for the impact of the iPhone on our financial results,” Hesse said in a letter to the SEC. “I do not want, nor does our Compensation Committee want, to penalise Sprint employees for the company’s investment with Apple, so I will forego this adjustment to my compensation.”
Mr. Hesse’s paychecks will be lowered by some $346,200 over the year and he will forgo more than half a million in bonuses.