After Sprint CEO made $43 million last year, Sprint to lose 900k subs this quarter

July 25, 2014

Dan Hesse, CEO of Sprint Corp- KansasCity

Last week, it was reported by FierceWireless that Sprint is likely going to report significant subscriber losses for the second quarter. In fact, Sprint is expected to report close to 900,000 handset subscriber losses for the second quarter. The losses of Sprint are mostly due to terrible service from questionable coverage, call quality and network speeds.

Now, an¬†adviser service is signaling their opposition to¬†Sprint’s CEO Dan Hesse’s $49 million pay package for 2013.

“Institutional Shareholder Services¬†said it is challenging the pay package because Hesse’s special equity award of $18.7 million was “entirely time-based, lacking connection to any performance criteria.”¬†Institutional Shareholder Services also said that Sprint didn’t disclose the goals surrounding Hesse’s $16.7 million equity grant.” - FierceWireless

Hesse’s $49 million package¬†was more than 3.2 times the median pay level of his CEO peers and made him easily the highest-paid executive at a publicly traded company in the wireless industry in 2013.

  • T-Mobile CEO John Legere was paid a total of $29.2 million in 2013, making him the second highest paid wireless executive in 2013.
  • AT&T CEO Randall Stephenson made $23.24 million in 2013.
  • Verizon CEO Lowell McAdam made $15.82 million in 2013.

sprint-nextel-quarterly-net-postpaid-wireless-customer-additions-sprint-nextel_chartbuilder

Hesse¬†is signed to an¬†employment term through July 31, 2018, subject to earlier termination as provided in the agreement. Sprint said the package was¬†“intended to enhance our ability to retain Mr. Hesse’s leadership for a minimum period of at least five years during which the Company plans to undergo a transformative change.”

Sadly, it is extremely unlikely that Institutional Shareholder Services will get anywhere.

Comments

  • abqnm

    How I read the title… If T-Mobile and Sprint merge, Dan Hesse definitely won’t be running things.

    • Arturo Raygoza

      I’m sure he will put in his two week notice asap…

      • abqnm

        I don’t care what he does now. I only care that he won’t be the boss if the merger happens. He can keep control of the sinking ship as long as he wants.

        • Arturo Raygoza

          There is no guarantee of that tho

          • abqnm

            It is pretty well a sure thing that Hesse won’t be running the new company. I would love to see John Legere, but that, while likely, isn’t for sure either.

          • Arturo Raygoza

            Nothing against you, I just don’t like unfounded rumors being spread as gospel

          • paxmos

            They both suck…

        • Justin Brennan

          I believe that John Legere is staying if the do merge, and would most likely end up as the CEO. I hope they don’t merge though… T-Mobile is doing fine without them.

          • Arturo Raygoza

            Rumors

          • abqnm

            While that is still speculation, he would be the best fit for the new company. And I have plenty of reasons why I don’t want to see them merge, but there are some good reasons too. Spectrum is the biggest benefit. If they merge, down the road, the CDMA network will eventually be shut down and everyone merged to GSM. And then all that spectrum can be used to further bolster the GSM/LTE networks.

  • MasterMuffin

    I’m going to become the next CEO of Sprint o.O I can do a really lousy job yet get paid more than anyone else!

  • John Conatser

    this really made me smile. I really hope sprint crashes and burns…

  • Aar0nC

    DIE SPRINT, JUST DIE!!

  • Guest 123

    CEO’s in this country as massively over paid!!!

  • xlSamsonlx

    I’m glad to be 1 of those 900,000 lost subscribers.

    • buhbye

      2 in our family too.

      • xlSamsonlx

        my brother is leaving next month followed by my mom.

    • a22matic

      I’m one too… Been with Sprint since early 2000’s, but left 2 weeks ago for AT&T and the G3…

    • kld2009

      Me too. :)

  • Chris

    Damn to think ONE person can make that much money in a year. Cut your pay by 10x and you could help your company while still being able to afford anything you could ever want…

  • Jo Rey

    I simply hate sprint, i helped my 70 year old neighbor move to chit chat. A a sprint company, they had him on a minute per minute basis and at some point paying 300 per month. He also had a new 4s that he got from his son, that a sprint representative took for a trade he only got $70 credit and they put him under a contract. There plans are over priced and the data network is laughable. My friend with lte only gets hspa+ speeds and the service is by all accounts worst than tmobile. I simply cannot fathom why sprint costumers arnt dropping sprint and going to T-mobile. A cheeper, faster, more reliable service than sprint.

    • master94

      People are holding onto Sprints old $10 unlimited data plan before even Android was released. They really love to grandfather plans

      • Justin Brennan

        Someone I know pays the $10 a month and has upgrades once a year. Even that I don’t think would be worth it if you can’t even use your service… At some point you have to realize that waiting forever for speeds that will actually load isn’t worth it.

  • Markus

    Ill give Sprint a deal..They can pay me 5 million a year; cut their losses with Hesse and let me turn the company around.

    • master94

      Id do it for a buck. It wouldnt be hard. Sprint has more spectrum than anyone else but doesnt want to use it because Hesse sees it as a opportunity to sell it when the price gets higher. Hesse is all about making money and not about running a wireless company. Thats why even though Spark can go up to 1gbps if allocated 40×40 spectrum in every market which sprint has, Hesse wont because he hope to sell that spectrum to VZW for a lot of cash. Instead we get a crappy 10×10 in three markets out of 500

      • Markus

        I Guess he wants to hold out for a rainy day but got damn it its raining everyday with Sprint!!! Lol I’ve written it off to the NWO. Some power out there wants Sprint to fail and is probably paying alot to see it happen. There is no way in Hell a company like sprint is failing so badly. I just can’t see a person making such poor decisions and still get a salary. United States is ass backwards all the way.

  • Jamie Yoak

    If you are a Sprint customer and left, what was your reason? Thanks.

    • Arturo Raygoza

      My brother was and left in second quarter, he didn’t mind the high price per month but couldn’t stand the shitty ass service and left to T-Mobile, I brought him over

    • Justin Brennan

      My family had Sprint for years. Their service got about 0.2 mgps down on 3G and they told us we wouldn’t get LTE until 2015. Not only that, but many of their employees lied to us and told us that our upgrades were up or that we could get a new phone, and then would pay extra. At one point my mother was going to upgrade her phone and get a new tablet and then after 40 minutes the employee realized he had misread something and it would end up costing like $200 extra. Once we switched to T-Mobile we got great LTE coverage with 40+ mgps down.

    • kld2009

      Coverage. “Can you here me now?; No”.
      And better data speeds. I miss the unlimited though.

    • Cory

      After multiple issues from them with my account, which included them over writing my account with someone else’s info twice. After poor signal everywhere I went. After poor speeds when I was lucky enough to get signal. After having a co-worker on T-Mobile stand next to me while we run a speed test at the same time and he got 6 times the speed I did. I decided to switch. Places I got no signal, or very weak signal I now get great speeds. My average speed now with T-Mobile is on par with the peak speeds with the best signal that I got with Sprint. Not sorry I left.

  • Arturo Raygoza

    I’m surprised Verizons ceo makes so little in comparison, I wonder if he is on ebt?

  • Justin Brennan

    Glad to have left Sprint a couple of months ago for T-Mobile. Amazing to have service that I can actually use, and to usually get over 40 mgbs down.

  • paxmos

    I could care less about the unprofessional, arrogant, indifferent attitude of their sales people in their stores, crappy network performance in a major metropolitan area (forced by employer to use the service on a company owned phone), If I were a customer, I would definitely leave because of the idiot Dan Hess. have you ever seen his commercials???

  • Neverenuff

    Sprint service in the Dallas-Fort Worth area is great. No complaints with my data speed

    • Chad

      Example of Sprints LTE speed in the Dallas-Fort Worth area