AT&T CEO Pays $2 Million for T-Mobile Deal Debacle
Turns out it cost CEO Randall Stephenson, as well — $2.08 million in bonuses.
In a new filing with the SEC, AT&T’s board called Stephenson out for the collapse of what would have been a $39 billion merger between the nation’s second-largest and fourth-largest mobile phone operators.
“Although costs incurred in large merger transactions (such as T-Mobile) are to be excluded in calculating final performance attainment, the Committee determined to include the T-Mobile transaction costs in determining payouts for all outstanding executive officer performance share awards, resulting in reduced final award payouts for performance shares with a 2009-2011 performance period,” the board explained in the filing.
And then it took the scalpel to Stephenson’s incentive pay, slashing his short-term bonus to approximately $1,260,000 — a 25 percent cut — and his stock award to about $820,000 — a 6 percent reduction.
End result: A nasty $2 million pay cut that helped drop Stephenson’s total compensation for the year to $22 million, a 19 percent decline from the $27.3 million he received in 2010.