Because They're Worth It?

The chief executive of Sprint received more in total compensation last year than any other operator in Light Reading's study, with Telefónica's Cesar Alierta the highest earner in Europe.

July 29, 2015

7 Min Read
Because They're Worth It?

Whether you're heading off for a luxury break in the Caribbean or going camping in Yosemite, just think what you could afford this holiday season if you featured in this chart of executive pay at some of the world's biggest service providers.

Figure 1: Sources: Bloomberg, companies, IRS, Reuters, SEC Sources: Bloomberg, companies, IRS, Reuters, SEC

Staggering as it might seem, new-ish Sprint Corp. (NYSE: S) CEO Marcelo Claure received more in total compensation last financial year than any other executive on our list, receiving a package worth nearly $22 million despite not joining Sprint until mid-August (the operator's financial year runs to the end of March).

Has Claure justified his inflated paycheck? We'll not offer judgment on that in this story but it's worth noting that Sprint's share price has fallen by 57% since this time last year, just days before Claure took over.

In Europe, Cesar Alierta, CEO of Spanish incumbent Telefónica , can crack open the cava in celebration, having collected a cool $8.6 million in total compensation, more than any of his regional peers. Indeed, Alierta received about ten times as much as Dominique Leroy, the CEO of Belgium's Proximus and one of only two female CEOs on our list, the other being Chua Sock Koong of Singapore Telecommunications Ltd. (SingTel) (OTC: SGTJY).

Alierta's been head honcho at Telefónica since the Jurassic age of telecom, having taken up his current role in mid-2000, when satellites were all the rage and mobile data meant faxing spreadsheets to your boss. He must be doing something right, but Telefónica's share price has also suffered in the past year, falling by 8.4% over that period on the New York Stock Exchange.

In Asia, meanwhile, Chua Sock Koong was far better compensated than Leroy, receiving a package worth about $3.6 million for her efforts at the Singaporean incumbent, which owns stakes in a number of other service providers across the region.

But the highest earner at the operators we were able to analyze in this region (many companies do not disclose this information) was Simon Moutter, CEO of New Zealand's Spark, whose total compensation last year was about $4.3 million -- more than was paid to Vodafone Group plc (NYSE: VOD) boss Vittorio Colao or Telecom Italia (TIM) head Marco Patuano.

That's not bad considering Spark operates in a market of fewer than 5 million people and has no major overseas subsidiaries.

We've included a few more details about the executives and operators we researched in the tables below. For simplicity's sake, we've used yearly average currency exchange rates from 2014 (based on IRS data), even though some operators' financial years do not mirror the calendar year. We've also relied heavily on annual reports and SEC filings but used Bloomberg and Reuters as data sources in some instances.

Executive

Operator

Country

Basic salary ($)

Total compensation ($)

Randall Stephenson, CEO

AT&T Inc

USA

1,691,667

20,778,083

George Cope, CEO

Bell Canada

Canada

4,250,218

9,991,514

Guy Laurence, CEO

Rogers Communications

Canada

2,163,838

7,823,455

Dan Hesse, Former CEO

Sprint Corp

USA

533,850

10,571,729

Marcelo Claure, CEO

Sprint Corp

USA

923,077

21,798,463

Joe Natale, CEO

Telus Corp

Canada

906,232

8,205,013

John Legere, CEO

T-Mobile US

USA

1,250,000

18,567,001

Lowell McAdam, CEO

Verizon Communications

USA

1,580,769

18,230,862

Dan Mead, former CEO

Verizon Wireless

USA

940,385

7,517,819

Executive

Operator

Country

Basic salary ($)

Total compensation ($)

Gopal Vittal, CEO

Bharti Airtel

India

511,677

905,340

Li Yue, CEO

China Mobile

China

132,300

247,241

Wang Xiaochu, chairman and CEO

China Telecom

China

53,175

142,634

Chang Xiaobing, chairman and CEO

China Unicom

China

46,919

168,283

Himanshu Kapania, managing director

Idea Cellular

India

1,254,600

1,470,009

Chang-Gyu Hwang, CEO

KT Corp

South Korea

390,627

461,651

Chua Sock Koong, Group CEO

SingTel

Singapore

1,249,697

3,574,237

Dong-Hyun Jang, president and CEO

SK Telecom

South Korea

N/A

1,327,587

Masayoshi Son, chairman and CEO

SoftBank

Japan

1,180,734

1,189,817

Simon Moutter, CEO

Spark New Zealand

New Zealand

1,082,658

4,285,841

Vinod Kumar, CEO

Tata Communications

India

109,836

569,903

Executive

Operator

Country

Basic salary ($)

Total compensation ($)

Dominique Leroy, CEO

Belgacom

Belgium

616,959

856,656

Gavin Patterson, CEO

BT

UK

1,496,835

6,990,506

Timotheus Hottges, CEO

DT

Germany

1,849,490

6,107,028

Eelco Blok, CEO

KPN

Netherlands

1,094,388

2,659,439

Stephane Richard, CEO

Orange

France

1,147,959

1,689,337

Marco Patuano, CEO

Telecom Italia

Italy

1,636,480

3,811,224

Cesar Alierta, CEO

Telefonica

Spain

2,845,663

8,588,010

Hannes Ametsreiter, CEO

Telekom Austria

Austria

700,255

1,561,224

Vittorio Colao, CEO

Vodafone

UK

1,454,082

3,584,184

– The Staff, Light Reading

Read more about:

AsiaEurope
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like