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AT&T CEO gets his pay slashed after failed T-Mobile takeover

Written by Andre Yoskowitz (Google+) @ 22 Feb 2012 19:19 User comments (9)

AT&T CEO gets his pay slashed after failed T-Mobile takeover AT&T CEO Randall Stephenson has had his 2011 salary slashed by $2 million following the company's failed bid to acquire T-Mobile.
The board of directors at the company noted the pay cut was directly tied to the takeover attempt and its expensive fallout.

Because of the failed takeover, AT&T had to pay a $3 billion breakup fee (the largest ever) to T-Mobile parent Deutsche Telekom, and give a large package of mobile communications spectrum and a long-term agreement on UMTS roaming within the U.S. for T-Mobile USA, all of which was worth about $1 billion.

AT&T had bid $39 billion to try to acquire T-Mobile, which is the fourth largest carrier in the United States and the only other major to use GSM networks. Late last year, however, the FCC and Department of Justice blocked the deal, citing anti-trust issues. Had the deal gone through, most believe the U.S. wireless world would have become a duopoly controlled by AT&T and Verizon. Sprint, the third largest carrier in the nation, was a vocal opponent of the deal, which likely would have seen them squeezed out of the picture.

Even with the price cut, Stephenson still took home $22 million between his base salary, incentives and stock/option compensation. The CEO made $27 million in 2010.

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9 user comments

122.2.2012 19:51

Good.

222.2.2012 21:50

Two million is chump change to him.

322.2.2012 22:08

Why do I get the feeling my phone bills about to go up??????!!!!!lol

422.2.2012 22:56

So he loses 2 million yet customers have the extra $18 fee tacked onto their newly upgraded phones?


"Cable thief is a victimless crime."

523.2.2012 1:57

Originally posted by plutonash:
So he loses 2 million yet customers have the extra $18 fee tacked onto their newly upgraded phones?
I guess we *all* know who will end up paying for this...

623.2.2012 11:40

It's all a PR stunt. He'll probably get it back 10 fold in bonus' due to the doubling of the 'tech upgrade' for continuing customers.

In the past, 10K lower ranking employees would have gotten the axe & this idiot would have been given a raise & told what a wonderful job he had done.

I guess you 'could' call this some kind of progress, but I'm still skeptical.


723.2.2012 17:43

wow, how does at&t expect the guy to survive?...he surely can't wipe his ass with 100 dollar bills anymore.


your conscience doesnt absolve your guilt

824.2.2012 18:13

Originally posted by B2D327:
wow, how does at&t expect the guy to survive?...he surely can't wipe his ass with 100 dollar bills anymore.

Now he can only do it every few minutes...not 24-7 like he was doing. :)

Seriously tho...why is this guy even still there? Nevermind the money lost...it is nothing to a company like AT&T...HE GAVE A HUGE EDGE TO T-MOBILE! The spectrum they got will put them right about even with AT&T in terms of coverage licensing, and the money they got will go towards building towers that will allow them to use most of that coverage licensing. T-Mobile is ready to replace sprint as #3...and there is a real possibility that they could be #2 within a decade. If that were not enough, they seem to want to encourage people to go to T-Mobile by hitting them with annoying, BS fees when it comes time to renew their contracts. If I didn't know better (and I don't) I would think this guy was taking money from T-Mobile under the table.


925.2.2012 14:06

Originally posted by KillerBug:
If I didn't know better (and I don't) I would think this guy was taking money from T-Mobile under the table.
I'd say you hit it right there. We'll probably hear about his resignation 90 days from now & then he'll reemerge some 6 months later as a mogul in the T-mobile ranks riding atop an gilded palanquin.

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