AT&T Chief Executive Randall Stephenson had more on the line than his reputation when AT&T failed to acquire T-Mobile USA.
He lost out on a big chunk of change, thanks at least in part to the collapse of the $39 billion merger between the nation’s second-largest and fourth-largest mobile-phone operators.
The telecommunications giant has revealed that its board has cut Stephenson’s combined short- and long-term incentive payout by more than $2 million, due partially to the deal’s demise, Dow Jones reported.
AT&T announced late last year that it was walking away from the deal in the face of strong opposition from the U.S. Department of Justice and Federal Communications Commission.
AT&T’s board slashed Stephenson’s cash bonus by 25 percent and cut his stock award by 6 percent, resulting in a $2.08 million pay cut, The Associated Press reported, citing a regulatory filing.
But Stephenson still benefited from an enviable compensation package in 2011; the AP calculated that his total pay was $18.7 million.
Dallas-based AT&T had to pay T-Mobile’s parent, Deutsche Telekom AG, a $4 billion breakup fee in cash and assets for the merger’s collapse.