Sticking around pays off for Sprint CEO Hesse

Sprint CEO Dan Hesse was rewarded handsomely under a new contract that boosted his overall 2013 compensation and stock gains to more than $55 million.

Hesse dialed up compensation valued at about $47 million, vs. $10.8 million in 2012. He realized another $8.1 million gain from vested shares, Sprint said in a Friday proxy filing.

Hesse's 2013 compensation package included a $1.2 million salary, $27.8 million in company shares, a $13.4 million incentive award and nearly $227,000 in legal fees tied to negotiating his employment contract, Sprint said.

Much of Hesse's stock award is retention-based and doesn't fully vest until 2018, when his five-year contract expires.The nation's third-largest phone carrier said it was important to retain Hesse and other key executives after Japanese telecommunications giant SoftBank acquired a 72% stake for $21.6 billion last July.

Hesse's compensation package would have been $2.4 million higher had he not forfeited $2 million in incentives and $400,000 in pay following the company's lackluster 2012 performance.

Hesse, 60, has presided over Sprint since December 2007. He's been a frequent, plain-speaking star in the company's advertising campaigns. But Sprint shares have been lackluster performers, at best - falling from about $15.50 to about $2 by 2012. Friday's close: $8.51.

Competition from Verizon, AT&T and T-Mobile, plus issues over its own overhauled network, have hurt Sprint for years. On Monday, Hesse offered new customers a 30-day, money back offer if they weren't satisfied with the quality of Sprint's network. Hesse and SoftBank CEO Masayoshi Son are also spearheading a $32 billion merger with T-Mobile that faces stiff opposition from regulators.

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