AT&T CEO Randall Stephenson Got Pay Cut for Failed T-Mobile Deal
AT&T Inc. (T) Chief Executive Officer Randall Stephenson received a $2.08 million pay cut in 2011 for failing to successfully complete the T-Mobile USA acquisition, according to a federal filing.
Stephenson’s total pay, including stock, was $22 million, a 19 percent decline from the $27.3 million he received in 2010.
AT&T, the largest U.S. phone company, abandoned its $39 billion takeover bid for Deutsche Telekom’s T-Mobile in December, after facing opposition from federal regulators. The Dallas-based company paid a $4 billion breakup fee to T-Mobile after the deal was dissolved.
The company says its “named officers” all took a pay cut to 75 percent to 80 percent of their target bonuses related to the T-Mobile deal’s collapse.
“AT&T is committed to paying for performance and the compensation reflects that,” said McCall Butler, a spokeswoman for AT&T in Washington, D.C.
Two executives -- Ralph de la Vega, CEO of AT&T Mobility, and John Stankey, AT&T’s chief strategy officer -- received 100 percent of their bonuses.
To contact the reporter on this story: Scott Moritz in New York at smoritz6@bloomberg.net
To contact the editor responsible for this story: Peter Elstrom at pelstrom@bloomberg.net
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