Sprint stops gauging CEO performance on Clearwire customers
updated 09:45 pm EST, Mon February 28, 2011
Dan Hesse gets boost in bonus
Sprint has changed the terms that determine CEO Dan Hesse's bonus for 2011, bringing an 18 percent gain in the executive's "short-term incentive" target. While customer numbers on Clearwire's network were an important factor calculated into 2010 compensation, performance on the WiMAX partner network will not be considered as a factor for the CEO's performance this year.
The increase in short-term incentive bonus lifts Hesse's target by $720,000 to reach $4.8 million, while his long-term bonus targets, which pay out through stock options and cash after three years, jumped from $10 million to $12 million, according to a Bloomberg report.
Sprint's board of directors decided to use operating income, contract subscriber turnover and service revenue to determine executives' bonus eligibility through the first six months of the year.
