Sprint CEO Dan Hesse received a major increase in compensation last year, a regulatory filing has revealed.
Hesse received $11.9 million in compensation last year, thanks to $1.2 million in salary, $829,000 in bonus, $3.2 million in stock awards, $1.7 million in stock options, $4.8 million in non-equity incentive plan compensation, and $94,000 in other compensation. Although it's no surprise a public company CEO is making millions, it's worth noting that his compensation increased nearly $3 million between 2010 and 2011.
According to the Securities and Exchange Commission filing, Hesse's increase came by the way of the $829,000 bonus, which he didn't receive in 2009 or 2010, $1.6 million more in stock awards than in the previous year, and $500,000 more in non-equity compensation. Despite last year's increase, Hesse's compensation was down from 2009 when he made $12.3 million.
Although Hesse is making a nice living, his compensation is miniscule compared with that of his competitors. Last week, Verizon revealed in an SEC filing that its CEO Lowell McAdam made $23.1 million last year. AT&T CEO Randall Stephenson made $22 million.
Interestingly, Sprint's board decided against factoring in the huge expense that Hesse took on by bringing the iPhone to his company's service. The board's compensation committee called the iPhone's launch an "extraordinary circumstance," effectively giving Hesse and his executive team a pass. In the fourth quarter of 2011 alone, Sprint lost $1.3 billion, due mainly to the expense of iPhone subsidies.
Updated at 7:50 a.m. PT with more details on Hesse's compensation.