AT&T cuts CEO pay by $2M over failed T-Mobile buyout
updated 07:15 pm EST, Tue February 21, 2012
CEO sees drop in cash bonus, stock compensation
AT&T's board of directors has reportedly moved to slash CEO Randall Stephenson's 2011 compensation by more than $2 million due to the executive's role in the unsuccessful attempt to acquire competitor T-Mobile. The board decided to reduce Stephenson's cash bonus by 25 percent, while his stock compensation was cut by six percent.
The company recently reorganized its leadership following the failed buyout, promoting veteran John Stankey to head corporate strategy as Forrest Miller departs after serving for 30 years. The shakeup shifts several other players to lead the company's business segment and network operations.
After the deal fell through AT&T reported a fourth-quarter loss of $6.7 billion. The numbers include a $4 billion fee paid directly to T-Mobile as part of the original agreement. AT&T also lost approximately $1 billion in frequency licenses that were transfered to T-Mobile as part of the "break-up" provisions.
Stephenson appears to be keeping his job as chief executive of AT&T, however the bonus cuts are viewed as evidence that he is being held partially responsible for pushing for the acquisition. The deal quickly fell apart due to strong opposition from the FCC and the Justice Department over antitrust concerns. [via AP]
