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Executive decision: Just say 'no bonus'
Hail a new era of corporate responsibility in telecom! AT&T CEO Randall Stephenson has decided not to take a bonus for 2008, and he will keep managers, including himself, from getting raises this year. Perhaps it was the least that could be done as the telco is in the midst of cutting about 12,000 jobs, but these moves still could go down as landmark decisions. Why? Not many CEOs ever skip bonuses, even after the worst of years-and AT&T actually had a pretty good one in 2008, all things considered. Managerial salary freezes usually come after a major swoon has begun, not in anticipation of one.
Stephenson reportedly told employees that these moves did not constitute "an easy decision." Not easy because Stephenson did not want to set a standard for other CEOs to have to live up to? It will be interesting to see how other telecom companies respond. From now through March, we will start to see more information being reported about who were the highest paid CEOs in telecom during 2008 and who was paid the largest bonuses. If there was ever a time for those bonuses and the SEC filings detailing them to be put under the microscope, it is now.
As I write this, CNBC is telling me in the background that Wall Street executives were paid $18.4 billion in bonuses for 2008. As President Obama and the New York attorney general continue to scold the gold-cufflinked Street walkers, telecom CEOs may see the writing on the wall. But, with telecom still fairly stable and everyone paying attention to Wall Street's woes, telecom executives probably could take a free pass this year if they wanted to, simply because the industry's performance in 2008 may compare so favorably to that of other industries.
That makes the AT&T move even more interesting. Is AT&T fearing the worst lies ahead? It did not really sound like it during the company's fourth-quarter earnings call last week, though its caution about 2009 came through loud and clear. Still, a historically bad set of macro-economic metrics is staring the industry in the face, so maybe a decision that was not easy for Stephenson and AT&T was actually the obvious one to make. Will it be as obvious to other telecom leaders?
-Dan
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Verizon's Ivan Seidenberg made just over $20 million in 2007
Comcast's CEO saw his pay decline to about $20.8 million in 2007
Verizon investors now get to weigh in on CEO pay
Comments
Posted by Anonymous | August 29, 2009 - 5:44pm
Let talk about At&T Scamming customer with the UVerse System. They tell you about the sign up bonus that you never receive in the mail and when you call they made a decision for you to post it to you bill. Then they tell you that your bill will be one amount never explaining that when you receive your bill that you have to pay another month in advance. I don't know how these people sleep at night this all is just a SCAM SCAM SCAM then they lock you into a contract where you have to pay even more money to get out. TIME TO CALL THE BBB on ATT
Posted by Anonymous | March 31, 2009 - 2:14pm
Before Randal Stevenson had finnished partying in school , my family had served Southwestern Bell Tel Co approching 175 years . That number is now higher .
When SBC bought out AT&T ,R Stevenson was their CEO . Since SBC has taken on the business name AT&T now R Stevenson has regained the CEO position of the old SBC / new AT&T . AT&T's business vision is to have as many contractors possible working for the company and not employees . SBC's vision was the direct opposite . Again AT&T's stock prices have tumbled .
Was the re-united baby Bell's and AT&T at work out of sight for the last 25 years ?
Posted by Anonymous | March 31, 2009 - 1:41pm
AT&T's CEO R Stevenson states that it's employees make too much money . If a person in group 1 craft pay band ( next to the highest paid title ) had worked for the company for 35 years , R Stevenson will be compensated that total 35 years of craft pay in less than 26 days !
Posted by Anonymous | March 31, 2009 - 1:33pm
AT&T's web proudly announced COE R Stevenson declined to take his bonus for 2008 but failed to note he did not decline his stock options for the same period . Who knows the 4q postings were 2.4 billion up from prior qusters of a mere 2.1 billion . The corperation finnished 2008 with after bills paid 12.9 billion .
AT&T states the last 20 quarters have produced double digit increases on stock payments . R Stevenson states the company can't afford health care for it's hourly wage employees .
To date some 30,000 AT&T jobs have been sent over seas . This delutes the core of the U.S. economy . Has anyone had problems understanding what was being said by tier I DSL support ? One reason for the AT&T strike 5 years ago was to bring back jobs to the USA . Of the 5,000 return jobs R Stevenson promised less than 500 have come back to US soil .
When will the US population stop jobs from being sent off shore ?
Posted by Anonymous | February 13, 2009 - 12:48pm
Government wants to decrease unemployment. But, corporations are increasing unemployment. So banks won't lend your tax money to people and businesses, rather they use it for bonuses. And the CEOs who are worth $25 million or more, won't take their bonus this year, or ride in a corporate jet to a press conference, which a nice gesture designed to fool some of the people some of the time. Now, the Government wants to use your money again, but several politicians and cabinet members don't pay their taxes.
Is there something wrong with this picture?
Posted by Anonymous | February 13, 2009 - 1:20am
Sbc Ceo Randall Stevenson, cashed out 3,000,000 in stock options, He says he did not take a bonus, but he denied all hs employees bonus. What a joke???? Laid Off 12000 employees and claims that the company did not meet goal but only made 12 billion dollars. Do the reasearch you will find more. Greed!!!
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