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AT&T Execs Well Compensated After Good Performing Mergers

By Tricia Duryee - Tue 11 Mar 2008 04:54 PM PST

In 2007, AT&T (NYSE: T) executives were well compensated. Randall Stephenson, chairman, president and CEO, received total compensation of nearly $22 million, jumping from $14.6 million in 2006. Stanley Sigman, who was president and CEO of AT&T Mobility until retiring at the end of the year, received compensation of $36.9 million, increasing from $28.6 million in 2006. His replacement Ralph de la Vega, who came from Cingular, received $12.4 million in 2007. Total compensation from all executives included millions of dollars in stock rewards, which AT&T is required to expense for awards granted in 2005, 2006 and 2007 that mature in 2007 or later. When only taking salaries and cash bonuses into account, Stephenson made $1.8 million; Sigman made $1.4 million and de la Vega made $1 million. The findings were reported today in the company’s Proxy, which it filed with the SEC.

Leading up to 2007, the company under went dramatic change. In 2005, SBC Communications acquired AT&T to create the new AT&T, which included part ownership of Cingular Wireless. AT&T went on to acquire BellSouth in 2006, which allowed the company to fully integrate Cingular. Since then, it has been refining the much larger company, and focusing on its wireless division, including the high-profile and successful launch of Apple’s (NSDQ: AAPL) iPhone last year.

In the company’s Proxy, it makes a note of these acquisitions, saying it has “transformed the company into a premier global telecom competitor, creating substantial value for our stockholders...In 2007, our stock price increased by 16 percent, resulting in a total stockholder return (including the reinvestment of dividends) of 21 percent. During 2007 the wealth of our stockholders increased by over $28 billion in market value and over $8.7 billion in dividends.”

Posted in: Companies, Operators, Cingular-AT&T

Tags: ralph de vega,

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10 Responses:
  • From Gary Tue 11 Mar 2008 08:14 PM

    They all have Ed to thank!!!

  • From J Pylant Wed 12 Mar 2008 07:01 AM

    This just ain’t right. I am one of the top performing sales managers for AT&T;in the country. I made about .0007% of this in 2007.

  • From Bobby Wed 12 Mar 2008 10:49 PM

    I am a service technician and I don’t see how they can come up with all this money for themselves but can’t find money or time to make the network and conditions better

  • From Ron Holt Thu 13 Mar 2008 05:29 AM

    We have to beg or borrow for ink cartridges, pens, and paper needed to do our jobs.  This type of executive compensation is vulgar.

  • From Paul Thu 13 Mar 2008 07:58 AM

    No wonder my retiree health beneifts suck! I They don’t have to worry about thiers I am sure.

  • From Jason Fri 14 Mar 2008 03:21 PM

    Let me know when you’re ready to treat work as the #1, 2 and 3 priorities in your life, with family and friends a distant # 4 or 5.  Work 80 hours a week, on call 24/7/365, never take a vacation where you can forget about work, be responsible for the lives of over 300K people, and forgo all semblance of a private personal life. 

    There’s a reason executives get paid what they do, ability and WILLINGNESS to do the job. 

    Wealth envy is pathetic.

  • From larry Mon 17 Mar 2008 07:28 AM

    as a service rep with att in southfield mi id just want the company to stop putting so much pressure on us to sale products to the point that if we don’t sell enough per mo it could lead to jobs lost, i would think if you want us to prosper make the enviorment that which we can, and then and only then will i agree to this type of compensation for exec.

  • From Bothell Wed 19 Mar 2008 07:26 PM

    Jason, you’re attitude is what is pathetic. I suppose you likely are an executive. I’ve known a number of them. They frequently rotate companies, hiring their good-ol-boy network to work for them (again) and rotate companies every several years. Having been in the industry for 15 years, and knowing a well-respected exeutive management training consultant, I can speak to this with some level of experience and knowledge . Our execs work *maybe* 40 to 50 hours a week - and get 5 weeks or more vacation a year at AT&T;, so don’t play the martyr here. Many of us at AT&T;are on call 24/7. But hey, I guess because they are at the top, that justifies them for as much as a 55% pay raise annually while we get little or no raise (after inflation it can be a cut), and get the medical benefits raised to a $2200 deductable, time off cut back, and even the worker bees bonuses were cut 3% this year… but not theirs - they got absurd bonuses - just see the figures above. Then they took proceeded to even take away the kitchen condiments, creamer, and even the plastic silverware in the kitchen - oh and lest I not forget, they even took our water coolers. Then it was office supplies cut next. On top of that, our project budget got cut about 60% - for one of the top products in wireless (the companies most profitable division by the way.) I guess we know now where a good deal of those “savings” went. I don’t buy your “these poor executives sacrificing their time and lives” line, that they deserve it. Many, many of us sacrifice untold time with our family and personal lives. My longest shift has been almost 40 hours - straight. Haven’t seen one of them make that type of sacrifice… ever. This is much more about who you know than it is the level of sacrifice, give me a BREAK! Most of us at our level could use one after the last year… and it’s why so many are quietly or not so quietly looking for other jobs now.

  • From Joe Wed 02 Apr 2008 09:18 AM

    I agree with Bothell. Our benefits are continually shrinking since cingular/ATT thing occured and on same token company continually keeps printing about better earning this time then previous. They contiually pressure employees to do more without providing extra resources. High management knows how to preech and include all the “right” lingo and the same garbage gets preeched down to worker bees, but worker bees who really keep an open eye understands what is really happening. Work more, get paid less, with less “benefits”, and forget about not being called on while you are on vacation.

  • From Bohica Sat 19 Apr 2008 09:18 AM

    Jason, anyone who works for at&t;are expected to make there jobs #1,2,&3;, the execs @ att do not give a rats a@# about your family.  The repair and Installation techs are expected to work 50 or more hours a week and are constantly harassed and having their jobs held in jeopardy if their children get sick or if you need to go to a doctors appointment.  Service reps who are being called with an irate customer complaint are not only expected to be nice to someone screaming and swearing at them but also have to try and sell them something at the same time.  I also come from a family of managment inside att and I know several1st-5th lines that I have spent alot of time and been on vacations with, and your version of what happens with managment in this company is a fairy tale, either your a first line (who are just glorified secretaries, who do have, in some cases deserve their pay,or just another staff member trying to justify an unneeded position and overpayment for a job playing golf and looking at clerical and craft workers numbers and thinking they are not doing enough , when you have no clue what you are talking about.  Att(at this time) is what a t t stands for, we need less chiefs and more indians.

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mocoNews.net is a news site covering the business of mobile content.

Rafat Ali
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