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Report: Sprint Loses $29 Billion, Execs Get $74 million

October 15, 2008
Sprint: Winning the Wrong Awards

Sprint: Winning the Wrong Awards

Executive compensation is always a fun topic, and it turns out the latest chapter in the book of overpaid execs comes from Sprint Nextel, who just beat out 500 companies to win the award for Worst Pay-For-Performance.

The study basically compared the top five executives’ salaries, bonuses, and sign-on/severance packages to the company’s performance in 2007, which was downright nasty. 2007 was a year that Sprint would probably just like to forget: its stock fell 30 percent, they lost $29 billion dollars, they tried to kick out their whiniest customers which resulted in a particularly ugly PR fiasco, etc. And this was before the credit crunch!

The two top guys – ousted CEO Gary Forsee and new CEO Dan Hesse – both earned $22.4 million and $28.3 million, respectively, as a result of severance and sign-on packages (which included stock options). And the running total compensation for the top five execs came in a little below the $74 million mark.

The report gave Sprint two D’s for 2005 and 2006, and a nice F for 2007.

Study: Sprint ranks worst in pay-for-performance

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