Sprint CEO Hesse gets $2.6 million dollar bonus

Sprint CEO Hesse gets $2.6 million dollar bonus
Usually an executive is rewarded when his company has had a good year. Despite losing more customers with a higher churn rate than his competition, Sprint CEO Dan Hesse received a $2.6 million dollar bonus for 2008 as part of an compensation package valued at $15.5 million dollars. And it was certainly not a great year for his firm as 4.6 million customers jumped ship and the carrier had losses totaling $2.8 billion dollars. Despite a strong focus on adding new accounts at the Nextel side of the company, the business oriented push-to-talk division lost 5 million customers. All of this information came from Sprint's annual proxy filing which also revealed that the CEO would receive a package worth $10.1 million dollars if he were to be dismissed, and if a change in control were to occur, Hesse would be due $10.7 million dollars. Sprint has a lot riding on the release of the Palm Pre as earlier reports said that the carrier will have the exclusive rights to sell the smartphone in the U.S. for the rest of the year. With the buzz that the Pre has created since being introduced at the CES, having an exclusive for even that short time period could bring in a strong inflow of needed cash to the carrier's coffers. Sprint's problems can't be placed totally on Hesse. He became CEO in 2007 when the company was already struggling with competition from AT&T and Verizon. On the personal side, the CEO has raised his profile greatly by starring in a series of television commercials for Sprint. Hesse recently said that he will stop appearing in the ads.

source: WSJ

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20 Comments

1. heavybreathing

Posts: 276; Member since: Feb 26, 2009

2.6 million dollar bonus when his company lost 2.8 billion? He should work for AIG.

2. phoneguy

Posts: 213; Member since: Jan 08, 2009

First of AIG took our tax dollars and paid their bonuses, Which was not the case for Sprint. Second you know nothing about Sprints Financial situation and the other underlying products and services that are offered aside from consumer wireless, which is where I am guessing you work. Also it was part of his compensation package and the company actually does have some momentum. Hesse has done a tremendous job since taking over for Gary Forsee. The economy is bleak all you vzw fans and people are going to try to save as much money as possible, when it boils down to the bottom line Sprint really does have the best bang for your dollar, you people only know what your republican poppa told you at the dinner table, so go ahead hate but at the end of the day when Sprint is done trimming fat and becoming healthy again then I guess re re-evaluate our informative comments.

3. Legion

Posts: 397; Member since: Dec 12, 2008

Calm down Hesse!

4. Legion

Posts: 397; Member since: Dec 12, 2008

Go swim in your money vault ala' Scrooge McDuck.

7. The Godfather unregistered

This guy is tripping. IN the end of the day, it is the end of Sprint. Their debt far exceeds their profits, and their loses of customers at over a million per quarter is equaling to a black hole where nothing is made and everything is lost. Sprint sold their towers last year, and started giving away data/voice plans at an alarmingly low cost which is equaling to more loss.

10. belve14

Posts: 113; Member since: Mar 31, 2009

Hello Mr GF cause I will not call you what you like to be claimed as and Legion....you guys are going to be my best freinds. You both get such a kick out of thrashing Sprint well...I get a kick out of thrashing all other companies other than Sprint. As far as this article I dont think Dan Hesse should have taken a bonus until sprint starts picking up again. Trust me fellows Sprint is Number 3 when it comes to customers but they are making some changes and coming out with some pretty nice phones. Other than that cant wait for some nice conversations in the future. Have a great day. P.S That bb storm crap is lame

5. realism121

Posts: 67; Member since: Aug 16, 2008

i'm so incredibly sick of seeing comments from Legion and Godfather. it's almost enough to make me stop coming to this site completely. we are not in the 5th grade. there is absolutely no reason for either of them to right the things that they write. it's ridiculous.

6. phoneguy

Posts: 213; Member since: Jan 08, 2009

Not too mention how biased this site is. Like Lowell McAdam didnt take a bonus.......

8. The Godfather unregistered

Lowell actually didnt take one. Check your facts. Ahnd BB Storm FTW dont come back

9. phoneguy

Posts: 213; Member since: Jan 08, 2009

I am coming right back. How long have you worked at the same Mall Kiosk ???????? Yeah some culture when you have to some big one to get a promotion no matter how good or bad you may be. Suck it

12. The Godfather unregistered

In love with the attention I am Working in an office I am as well. Keep dreaming, i dont live your nightmares turd. Keep letting the net rile you up, i will keep on pissing you off

13. Dood

Posts: 269; Member since: Mar 23, 2009

I like Legion and Godfather because I can understand all the things they say. Punctuation and proper grammer is key, kids.

14. vzw fanman

Posts: 1976; Member since: Dec 11, 2008

hahaha me too. i think godfather is legit

15. elgee02

Posts: 28; Member since: Jan 26, 2009

Unlike Hesse, Lowell McAdam actually deserves a bonus considering VZW's 2008 numbers are WAAAAAAAAYYYYYY better than Sprints. What an awful analogy.

17. attsucks

Posts: 139; Member since: Mar 24, 2009

Y because u both have verizon? Gay. Sprint is the best cheapest plans no problem with there service. Phones are amazing have been with them for 5 years and not one problem out of any of the phones i have. Storm sucks so sorry. Also there internet is pretty much amazing.

20. attsucks

Posts: 139; Member since: Mar 24, 2009

Wow your cool.

11. insider80

Posts: 93; Member since: Jan 26, 2009

i love haters all bow down to sprint

16. cartman

Posts: 45; Member since: Dec 11, 2008

the ranting among the ppl above is pure entertainment.

18. DonLouie

Posts: 594; Member since: Dec 22, 2008

at least vzw fanman isn't spouting that stupid crap about how Sprint's network sucks and all the rest of her off the wall stuff.

19. attsucks

Posts: 139; Member since: Mar 24, 2009

Yeah but plenty of the people that have Verizon do and it gets old. They think Verizon is the best when it really isnt.

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