Tuesday, March 27, 2012

Sprint CEO given nearly $3 million in extras in 2011

Dan Hesse's salary remained the same, but he was awarded a bonus and stock awards that pushed his compensation to nearly $12 million.

Sprint CEO Dan Hesse received a major increase in compensation last year, a company filing has revealed.

Hesse was paid $11.9 million last year, thanks in part to a salary of $1.2 million, stock awards of $3.2 million, and nearly $5 million in non-equity incentive plan compensation. Although it's no surprise a public company CEO is making millions, it's worth noting that his pay increased nearly $3 million between 2010 and 2011.

Hesse's increase came byway of an $829,000 bonus, which he didn't receive in 2009 or 2010, as well as nearly $2 million more in stock awards. Despite last year's increase, Hesse's compensation was down from 2009 when he made $12.3 million.

Although Hesse is making a nice living, his compensation is miniscule compared to his competitors. Last week, Verizon revealed in an SEC filing that its CEO Lowell McAdam made $23.1 million last year. AT&T CEO Randall Stephenson made $22 million.

Interestingly, Sprint's board decided against factoring in the huge expense Hesse took on by bringing the iPhone to his company's service. The board's Compensation Committee called the iPhone's launch "an extraordinary circumstance," effectively giving Hesse and his executive team a pass. In the fourth quarter of 2011 alone, Sprint lost $1.3 billion, due mainly to the iPhone's expense.

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