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Sprint CEO takes pay cut to offset iPhone costs

Categories: iOS / iPhone OS, Sprint
By: , IntoMobile
Sunday, May 6th, 2012 at 4:40 AM
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Sprint CEO Dan Hesse said he is cutting his salary to allay investors concerns about the high cost of the iPhone, according to a Reuters’ report. Hesse will give up  a total of $3,250,830 in incentive compensation from 2011 and 2012 to offset the high cost of the Apple smartphone.

It is thought that Sprint pays a 40 percent subsidy for the iPhone (about $200 per device), which is much more than it pays for competing devices. Sprint is expected to foot a $20 billion bill for carrying the iPhone over the next four years and won’t start making money on the device until 2014. This record high subsidy is pushing up costs for the carrier, even as it adds new subscribers and increases its postpaid ARPU.

[Via Reuters]

About The Author

Kelly Hodgkins

Kelly spent the last four years covering mobile technology at places like BGR, Gizmodo and The Unofficial Apple Weblog. Before writing, she spent a few years working with and teaching others how to use Adobe Flash and Macromedia Director. Even earlier than that, she spent several years as a Ph.D student in Microbiology. When she's not writing, she can be found fishing the lakes and hiking the mountains of Western Maine with her husband and tribe of children. You can follow her on Twitter @kellyhodgkins.

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