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Deutsche Telekom boss is wrong about 5G
Europe's biggest operator boasts success on both sides of the Atlantic, but there is scant evidence it is down to 5G.
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
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
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
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