“Sprint Nextel chief Daniel Hesse said he would take a cut in pay this year, after coming under fire from some shareholders disappointed with the hit the company’s results took from subsidizing Apple’s popular iPhones,” Siddharth Cavale reports for Reuters.
“Hesse said his 2012 salary would be cut to repay about $346,000 in incentive pay that he has already received and forfeit additional amounts that he was eligible to receive under his 2011 and 2012 incentive plans,” Cavale reports. “‘These voluntary actions regarding my personal compensation, which total $3,250,830, will eliminate any benefit for me to the discretionary adjustment the compensation committee made earlier this year,’ Hesse said in a letter to the company’s human resources department.”
Cavale reports, “Sprint’s massive $15 billion bet on selling Apple’s iPhones has not gone too well with investors, disappointed that the high subsidies on the device [40% higher, or $200 more per device, than what it pays for other phones] had pushed up costs at the No. 3 U.S. operator, even as it added more subscribers.”
Read more in the full article here.
MacDailyNews Take: Sprint shareholders must prefer bankruptcy. In the U.S. especially, a carrier either has Apple’s revolutionary iPhone or they’re a loser.
Apple is beating Android in the U.S., despite reports to the contrary – May 3, 2012
iPhone owners least likely to switch carriers over poor service; significantly more likely to stick with their phone – May 3, 2012
Apple CEO Tim Cook: Enough of this silly talk over iPhone subsidies – April 25, 2012