updated 08:54 pm EDT, Fri May 4, 2012
Hesse voluntarily surrenders cash due to iPhone-related losses
Following a loss of profit due to iPhone subsidies to consumers, Sprint Nextel CEO Daniel Hesse said he would take a pay cut this year. Hesse reported his 2012 salary would be cut to repay $346,000 he has already received in performance bonuses, and he will voluntarily surrender additional cash from 2011 and 2012 incentive plans.
In a memo to his human resources department, Hesse wrote "These voluntary actions regarding my personal compensation, which total $3,250,830, will eliminate any benefit for me to the discretionary adjustment the compensation committee made earlier this year."
Sprint's subsidy to Apple is $200 higher per device sold than what it pays other manufacturers for phones. Sprint reported serious losses in its winter quarter, yet gained subscribers with the sale of 1.5 million iPhones in the same period of time.