AT&T CEO's 2011 Compensation Hurt By Failed T-Mobile Deal

(RTTNews.com) - Telecommunications giant AT&T Inc.'s (T) chief executive officer Randall Stephenson's compensation in 2011 was reduced by $2 million, thanks to a failed attempt to buy T-Mobile USA, a regulatory filing showed.

"...despite strong operational performance, Mr. Stephenson's compensation was reduced by more than $2 million, including a 25% cut in his short-term award, a significant reduction in his payout percentage relative to other managers," the filing revealed.

The company's board acknowledged Stephenson's contribution to AT&T's growth. With Stephenson at the helm, AT&T led the industry in key growth metrics and substantially improved its operational performance and its financial strength. AT&T also led all U.S. wireless providers in iPhone sales.

According to the filing, Stephenson's transformative agreement to acquire T-Mobile USA from Deutsche Telekom ended due to FCC and Department of Justice opposition, although it was supported by analysts, labor unions and government agencies.

"The transaction reinforced the need for policymakers to make essential spectrum available to support exponential growth within the wireless industry," the company said in the filing. AT&T had taken a $0.44 per share charge in the fourth quarter for termination of the T-Mobile USA acquisition.

Out of the total $22 million in compensation for 2011, Stephenson received $3.79 million in short-term payout compared to $5.05 million in 2010. In 2011, his salary stood at $1.55 million and stock awards came to $12.75 million.

Stephenson's reported compensation declined by 19.4 percent from 2010 to 2011 following a 6.5 percent decline from 2009 to 2010.

T closed on Wednesday lower by 0.20 percent at $30.28 on a volume of 15.73 million shares.

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