NEW YORK (AP) — Sprint Nextel CEO Dan Hesse says he's cutting his 2012 pay by $3.25 million after shareholder complaints about how his 2011 pay was calculated.
Sprint's board bases the CEO's pay on the company's performance targets, but departed from its guidelines last year to exclude the cost of selling the iPhone. That boosted Hesse's pay.
The phone is expensive up front for phone companies, but they figure they'll make their money back in service fees over the run of a two-year contract. Sprint started selling the phone in October.
Hesse's 2011 pay was $11.9 million, including stock and option awards.
Sprint's annual shareholder meeting is May 15.