Sprint CEO takes a paycut

Sprint’s CEO Daniel Hesse has agreed to take a paycut this year as punishment for wasting company cash on a deal with Apple.

According to Reuters, Hesse thought he was onto a winner by subsidising Apple’s iPhones, but it turned out that the deal only cheered the bottom line of Cupertino.

In a letter to his HR department he said that the action was voluntary and his actions would set his 2012 incentive compensation target opportunities back to 2010 levels.

While it is nice to see a CEO put their hand in their pockets after making a mistake, he has to admit that paying $15 billion to sell Apple’s iPhones has not gone well with investors.

To get the deal Sprint pays Apple a subsidy that is 40 percent higher, or $200 more per device, than what it pays for other phones.

Investors noted that the high subsidies on the device had pushed up costs at the Number 3 US operator. While it added more subscribers, it also meant it had to stump up for infrastructure changes.