Ontario Teachers’ Pension Plan to oppose CEO Hesse’s re-election to Sprint’s board

“The Ontario Teachers’ Pension Plan, one of Sprint Nextel Corp’s key investors with about a 4 percent stake, will vote against Chief Executive Dan Hesse’s re-election to Sprint’s board,” Reuters reports.

“Deborah Allen, a spokeswoman for the fund, told Reuters this is the first time it has opposed the re-election of any Sprint director and was taking the action because of the ‘poor linkages’ between company performance and senior management pay,” Reuters reports.. “Hesse has come under fire this year from shareholders disappointed with the hit the company’s results took from subsidizing Apple’s popular iPhones and other investments.”

Reuters reports., “On May 4, Hesse said he would take a pay cut because of shareholder complaints, but the fund believes the cut is not sufficient to deal with the scale of Sprint’s problems.”

Read more in the full article here.

MacDailyNews Take: Without Apple’s iPhone, Sprint’s Board of Directors, if they existed at all, would by now be holding their meetings in the local fire hall.

Related articles:
Sprint CEO to take pay cut as iPhone subsidies pinch – May 5, 2012
Apple and Sprint have already inked deal for potential LTE 4G iPhone – March 27, 2012
Sprint CEO Hesse defends decision to bet the company on Apple’s iPhone – March 21, 2012

7 Comments

  1. Isn’t it crazy that a guy like Hesse, who seems genuine with some kind of morals, is getting attacked for saving his company from certain death? The man gave up millions of dollars of his own money to cover Sprint’s investments. Who else would do that? Especially when he didn’t have to. The iPhone deal was a smart one that should be commended.

    1. The whole American style investment thing is myopic. In order to turn around a company in trouble some unpleasant stuff has to be done.

      Steve Jobs cancelled a lot of stuff that he doubtlessly thought worthwhile- just not doable given finances in 1997. He pared the whole enterprise to 4 lines and rebuilt it from that point. Had he not, you would be reading this on a Windows 7 PC or worse.

      Sprint didn’t get into trouble overnight and has some massive and deep pocketed competitors. The turn around will be quite an undertaking.

      1. Sprint has had a notoriously bad corporate culture for decades. It translated into a notoriously bad attitude toward their customers. It is exactly this degradation of respect toward customers that damaged vast numbers of companies, dumping the world economy into the ongoing economic depression. Worthless crap business schools pumping out bad attitude MBAs has also contributed to the problem. The company is now seen as the predator and the customer is seen as the prey.

        It literally takes a full generation of new, sane, correctly trained workers and executives to overthrow self-destructive work and business cultures. It can happen! Apple proved it. But obviously it requires visionaries and some major butt kicking to throw out the self-destructive bums and bring in the creative thinkers once again.

        It’s all part of what has been established to be an inevitable business cycle. A company starts, typically, as entrepreneurial. Gradually the marketing people, who are by definition the antithesis of entrepreneurial, work their way in to executive positions and tank the company.

        Simply wanting to become a viable company again, at that point, is meaningless. Witness what Sony is doing right now for a perfect example. They’re tanking. They want to be vital again. But they put a marketing executive in charge. Oops. FAIL! It won’t be until a real entrepreneurial leader is put in charge of Sony again that they will make a turnaround. Same goes with Kodak. GM learned the hard way after decades of decline. On and on. Marketing-As-Management sinks the ship.

        1. Howard Stringer, who ran Sony until recently was the Producer and executive who presided over the destruction of CBS News- once the first last and only voice that counted in network news.

          When Stringer and Rather took over CBS had squashed NBC and ABC so hard that ABC had taken Roone Arledge, head of ABC Sports to be the head of ABC News. ABC started talent raids of CBS’ deep bench and CBS just let their dominance wither away. Stringer was in on the whole thing.

          Why Sony hired this clown is beyond human understanding. He is/was as qualified to run Sony as my dog is.

  2. My, look at the Ontario Teachers’ Pension Plan, taking aggressive action to combat Sprint’s poor performance. I’m sure fans of the Toronto Maple Leafs wish they’d been as aggressive back when they owned that team.

    ——RM

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