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.
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.