Should Dan be Fired?

It’s hard to believe the results of the past year and a half are what the Board had in mind when Hesse was hired. Subscriber losses a million+ per quarter with no end in sight, huge revenue and stock declines, employee morale at an all time low…the list goes on. And all of this while the rest of the industry has done quite well.

Clearly many of the problems pre-date Hesse’s involvement. Nevertheless, he is the man who was brought in to turn things around. So far he has failed badly. Let’s take a look back. The ad campaign featuring hiz honor was torturous. Sure, perhaps a four week campaign signaling a new direction in an effort to transition from the disastrous neon lights commercials would have been appropriate. A simple campaign featuring some of Sprint’s interesting features would have gone a long way to attract subscribers and counter the effects of the iPhone ( Sprint TV, GPS, Family Locater, Radio all would have tied in nicely with the Simply Everything plan). Instead, for more than a year, we had to watch nightly a highly paid CEO tell us how cool a cell phone is. When S did start marketing features, it poured its advertising dollars into a campaign for Direct Connect, a technology that has little or no mass appeal outside particular segmented groups. Marketing has been a huge failure for which Hesse is solely responsible.

Hesse came into office with a bang and a media campaign touting his ability to drop “nukes” (remember those nice glossies from USA Today that were passed around campus?). Besides Blue Jeans Friday, firing 8k people, and Simply Everything, Hesse’s bombing campaign had more bark than bite. The one thing Hesse is good at is lowering expectations, not only for the company but also himself. This way we are led to believe that by losing less the 4.5 million subscribers for 2009 Sprint will somehow be in good condition. And Mr. Narcissist will be the One who righted the ship.

Furthermore, while competitors are gearing up for the next wave (4G), Sprint is praying that a niche technology will offer a unique competitive advantage. Unfortunately, this aint gonna happen. Don’t take it from the Troll…just read any industry journal on the future of Wimax and LTE. In other words, when Verizon and AT&T come out with their 4G services and devices, Sprint (if it still exists) will be left in la la land.

Let’s also not forget about the indiscretions that occurred under his Hesse’s watch. From Brust’s $600k airline tab to Kathy Walkers $4 million illegitimate severance, to Keith Cowan’s million dollar payout for failing to deliver, Hesse has shown a lack of fortitude and control needed to handle the important albeit mundane problems that occur while running a business.

This is not how good leaders lead. Strong leaders put the company ahead of themselves; they offer a vision and plan for the future; and they show the integrity and spirit to lift the image of the company, build loyalty with customers, and boost morale amongst its employees. Dan has failed on all counts. It’s time for him to go.

the Troll would like to hear your thoughts. Should Dan be fired?

A Glimmer of Hope

In line with the Troll’s May 4 post, Sprint will need a drastic restructuring to avoid bankruptcy proceedings post 2010. Here is a scenario that could save the company. The Troll doesn’t believe the Dumb Cowards are capable of pulling it off because it would require decisive and creative thinking. Nevertheless, here it goes.

First, unload Clearwire stock. It may take some time due to the terms of the agreement between S and CLWR, but the sooner the better. WiMAX is not the future. It’s a niche technology and does not offer a favorable revenue stream. Sprint will need the liquidity and reduced expenses by eliminating XOHM. Make a WiMAX trophy and put it in the case with ION.

Move forward with the Erikson deal for managing the CDMA network. Outsource iDEN services to Moto. The reason for this will be clear in a minute.

Spin off Boost by making a stock offering to creditors in return for a reduction of S debt load. Creditors would be willing to accept this given the current strength of Boost. S could finally unload the iDEN network and the costs associated with it, including the outsourcing agreement with Moto. Part of the deal will include a favorable MVNO agreement with S so Nextel customers will continue to be part of the S portfolio.

With a reduced debt load, improved liquidity from the sale of CLWR stock, and reduced costs from the offloading of iDEN, Sprint will now be in a position to upgrade its network to LTE. Qualcomm is developing a duel CDMA/LTE chip and Erikson is the leader in LTE infrastructure deployment. Apple is purportedly developing an LTE capable iPhone for Verizon. It’s not too late for S to get in on the action..hopefully they learned from the last time they passed on the iPhone. Although S will be behind Verizon in its LTE deployment, the trend to open networks will make this lead insignificant. Within 3 years Sprint could be on an equal footing with the big boys. The Dumb Cowards must act now. Otherwise say goodnight to Sprint.

Is History Repeating Itself?

Remember Gary Forsee’s upbeat outlook after seemingly strong results in early 2007? Surely the Dumb Cowards knew the company was teetering on the brink of disaster but made a conscious decision to sugar coat the numbers and present a rosy scenario. The stock price ticked upward and Forsee’s vision and leadership was finally bearing fruit. We now know it was all a house of cards that came tumbling down within months. The SEC reprimanded S and requested more detail in its forward looking statements in future SEC filings.

Let’s move ahead to Q1 2009. In its Q1 press release, Sprint announces that the “loss of 182,000 total net subscribers represents a sequential improvement of over 1 million and best sequential net change in total subscribers in Sprint Nextel history.” Wow, sounds impressive! But wait, the majority of the gains are from low revenue wholesale and prepaid services. So how did post-paid do? Minus 1.3 million subscribers compared to million+ net adds for all major competitors. The Trolls asks “what does all this mean?”

The Troll has done the math and in previous posts and has warned of liquidity issues post 2010. But let’s look at S own statements from its Q1 SEC filing.

“If the net losses of post-paid subscribers continued at the rate experienced in the first quarter 2009 indefinitely into the future, it would have a significant negative impact on Sprint’s financial condition, results of operations and liquidity in 2010 and beyond. The successful prepaid wireless offerings, as well as the successful wholesale offerings, will partially offset these effects, but are unlikely to be sufficient to sustain the Company’s level of profitability and cash flows unless we are successful in reducing the decline in post-paid subscribers…..
….If we are unable to reduce the rate of losses of post-paid subscribers in 2009 or 2010, it would have a significant negative impact on cash provided by operating activities and our liquidity in future years.”

So, while touting the success of the pre-paid and wholesale business is a nice diversion, the real story is the loss of post paid customers. We’ve long known about the exodus of iDEN customers, but starting last year CDMA has been losing customers at an alarming rate. Hesse continues to state that the decreases will improve in 2009, but what is he basing this on? Even the rosiest projections for the Pre will result in a net subscriber gain of 500k for 2009, a pittance compared to losses of 1 million+ per quarter. If anything, the trend in pre-paid services will continue to cannibalize S pre-paid services. And lack of capital investment is certainly not going to improve network performance.

So what’s the answer? Certainly, being boring is not good business at this time; business as usual will result in failure. Interestingly, the success of Boost and the outsourcing play with Erikson does offer a glimmer of hope. It will require a real nuke however, not a ploy like re-instituting Jeans Friday.

The End Game

Although S is on the path to bankruptcy in 2010-11, there are several ways it may go. One investment banker with certain knowledge has revealed the end may come sooner and more quickly than expected. It will become clear S will not be able to make its $3.8 billion 2010 debt payments by Q1 2010. A rival will seek to influence the restructuring so that shareholder may salvage 2-3 dollars per share. First, the debt issues will be consolidated and sold (or at least managed by a third party institutition). They will seek to spin-off the Boost product line, which is launched on the iDEN network, into a separate company, giving existing S shareholders a piece of the pie. What’s left of the CDMA network and it’s customers will be sold to a rival company in exchange for a small discount outstanding debt issues. It’s a win-win for everyone. The Dumb Cowards will get their golden parachutes, which they would lose if S goes to bankruptcy. Shareholders will get something, which is better than nothing, thus eliminating a proxy showdown. The rival will get 25 million customers and network assets, and the debt holders will get their payments. Sprint KC will no longer exist as we know it, but that is inevitable.

Why are people so infatuated with the Troll?

Why are people so infatuated with the Troll?
Because the Troll speaks the truth. The Troll was right on target with 1.3 million in subscriber losses and revenue declines. And stock price is still down 70% from last year. Not much to get excited about folks. On the contrary, a run up in stock price was expected around the release of the Pre. Let’s remember what happened last time a Sprint CEO spun a story and claimed success. Two years back, Forsee inflated subscriber numbers by going after sub-prime customers. Eight months later he was out of a job and S was on an irreversible decline. Sound familiar?

Let’s dig a little deeper into Dan’s spin. S lost 1.3 million subscribers Q1 2009 compared 1.1 million in 2008. All competitors added more that 1.1 million. His claim that the economy hurt Sprint more than other carriers is laughable. Churn has increased significantly. Unlike subscriber additions, which are seasonal, churn reflects customer satisfaction at a point in time and is less affected by season. Dan’s attempt to include open source revenue streams and sub-prime customers in its customer numbers are a deflection to avoid the overarching problem of continuing and rising subscriber defections and substantial declines in revenues.

For all investors, make sure you pull your money out before third quarter announcement. Stock price will not go higher than $6.75, EVER. The Pre will get a lot of attention, but it cannot compete with the iPhone for high-end gadget wonks and business users will not breakaway from their Blackberries. It’s a nice device, but not a breakthrough product. The initial sales will come mainly from existing customers. Revenues may actually decline as a result of the Pre due to the high subsidy S will pay for each for sold.

S is still on pace for bankruptcy in 2010. The Troll has interesting sources who have revealed how the end game will play out. Check it out at sprinttroll.blogspot.com
The Troll

Never doubt the Troll

Well, if you have been following the Troll, this article should not have caught you by surprise. Unbelievably, there are corporate shills such as Hyde who like to give their little elevator speeches while the rest of us have a good chuckle. To put things in perspective, S stock is down 70% since beginning of 2008, when Hesse and his minions took over. In the same timeframe ATT has remained steady, Verizon has dropped about 18%, and T-Mobile and the regional players have posted respectable results. Simply put, if you had invested 100k in Sprint at the beginning of 2008, you would have 30k left…and that’s after the stellar results for 2009 that Hyde reported in previous posts. If you had invested in ATT you would still have all your money and a little left over. You’re odds are better investing with Bernie Madoff than following the wisdom of Hyde.

Still talking about numbers, what is even more perplexing are the subscriber figures for 2008. Verizon- plus 5.9 million; ATT plus 6.7 million; T-Mobile plus 3 million; and Sprint- MINUS 5.1 million. The regional carriers also posted healthy gains. Sprint was the only carrier to report negative net ads…and it wasn’t even close.

With another negative 1.3 million net ads expected this quarter (compared to minus 1.1 million from last year), things certainly don’t seem to be improving for 2009. To put it in perspective, Sprint is expected to have a 6% lower operating revenue for 2009 based solely on subscriber numbers for year ending 2008, amounting in a revenue decrease of $2.1 billion. This means if S maintains its existing subscriber base and ARPU for 2009, revenues will still decrease by $2.1 billion. Assuming Sprint loses a total of 3.5 million subscribers in 2009 (a conservative figure considering they have already lost 1.3 million), the resulting loss in revenue would be approx $1.2 billion (since subscribers are lost throughout the year, an average of 1.75 million subscribers x 56 ARPU x 12 months was used to calculate this figure). These are conservative estimates. Assuming more downward pressure on ARPU, a likely scenario given S price cutting measures and service credits, you can add another $40 million in lost revenue for each dollar decline in ARPU. In all, a $3.5 billion decline in operating revenues for 2009 is more than likely.
Moreover, larger phone and equipment subsidies, higher advertising expenses, and an approx $2 billion dollar debt payment will put additional downward pressure on obitda. Reduced labor expense will result in a savings of about $500 million.

S will also take a $300 million impairment charge due to the layoffs and additional impairment charges resulting from the sharp decline in Clearwire stock, of which Sprint holds a book value of almost $8 billion.

It’s hard to know what the cash position will be at the end of 2009, although it’s safe to say that it ain’t going to be good. Anyone hoping the Pre will make inroads into Sprint’s plight, the Troll has bad news for you as well. It is likely the Pre will attract some early adopters and maintain some existing customers. Nevertheless, word on the street is that the new OS is buggy. That’s not to denigrate the Pre. All new OS’s are deficient…iPhone, Android and others certainly had their problems. Nevertheless, in the rush to get the Pre out, Palm is treating the Sprint release almost as a beta test. This will bring bad publicity for Sprint. By the time the issues are rectified, Verizon will jump in and pick up the pieces. The Troll is not sure when S exclusivity ends with the Pre, but if it is before Christmas 2009, you can pretty much say bye bye to Sprint in 2010.
Surely 2010 must look better than 2009. Not a chance. Without going into specifics, the negative net ads from 2009 will result in further deterioration of operating revenues. The effect of the Pre will be marginalized by Verizon. The iPCS lawsuit will result in large declines in subscriptions or a hefty cash settlement. The acquisition of poor credit customers will come home to roost. And finally a $3.7 billion debt payment (and possibly more) will come due. A bankruptcy or fire sale is imminent. Sprint will not exist much beyond 2010.

It would be easy to blame Sprint’s demise on poor technology or the effects of a recession wiping away needless inefficiencies of a declining industry. But that is not the case. Sprint has good technology and, as evidenced by other carrier’s subscriber additions, the wireless business is a growing industry.

Sprint failed because of a leadership void. It is what happens when you have astronomical “performance bonuses” being paid to top executives with “unique skills”; an illegitimate $4 million severance to Kathy Walker; a $1 million incentive bonus to K Cowan for failing to complete his task; a CFO who flies himself and his family around the country at a price of 600k while preaching the virtues of frugality; hiring foreign H1B workers during periods of mass layoffs; electing an over the hill greetings card pinhead to the BOD; paying a $40 million golden parachute to a failed CEO; and an advertising campaign showing a 50-something, narcissistic, pocked-face CEO telling youngsters how neat a cell phone is at a time when politicians, commentators, and the rest of the world are railing against high-paid execs. These may seem like petty issues in the overall scheme of things. But they are indicative of a cancer that has infected Sprint and has spread to all levels of its ranks.
the Troll

the Troll responds to Griffs

Griffs, the Troll respectfully disagrees. The Proxy Statement is a forward looking document announcing information pertinent to the upcoming shareholder’s meeting. Although it does include compensation for the prior year, it also contains information available up to the time of its release. For example, last year’s Proxy (for 2008 SH meeting) included data on the termination of Kelly and Saleh, who were canned in January prior to the release of the document. At the very least, the report should have 2008 compensation for all Officers. For some reason KW was omitted entirely from the document. Regardless, the fact remains that KW stole an extra $4 million from the company.

But wait, it gets worst. Remember those nastygrams from CFO, Bill Brust, telling people to stop buying paperclips and drinking bottled water? And those newspaper articles about how he takes pens from hotels to save money? Well it turns out the little curmudgeon ran up a $600,000 tab last year flying himself and his family around the country on the corporate jet and charters paid for by Sprint.

Woody Allen made a movie a while back called Crimes and Misdemeanors. It’s about a high society man, philanthropist, doctor, all around good guy. He gets caught up in a discreet affair that later turns ugly resulting in the murder of his mistress. Initially, the man is wrought with guilt and the ways of the world begin enacting revenge. With the police closing in, the stage is set for the man to make a critical mistake. Yet, an odd twist occurs. Nothing happens. The murder is attributed to some homeless guy. The man wakes up one day, his guilt is gone, he rationalizes the murder as an anomaly and returns to leading a “normal” life. What started out as a murder mystery ended in a tragic display of ones lost soul.

It’s hard for the Troll not to draw a parallel with Sprint execs. With so much despair in the world (not to mention at Sprint), it is unconscionable what these Dumb Cowards are getting a way with. Sure, they can donate a few cans of vegetables to the local food bank and feel good about themselves. But the truth is they lack the moral fiber to lead an honorable life. The Troll

Feel free to comment at sprinttroll.blogspot.com

the Troll is dismayed...

the Troll is at a loss for words. There is not a peep of Kathy Walker's departure and payout in the Proxy Statement. This report and previous proxies all show exec payouts for the previous year. For example, Paul Saleh's payouts are documented in the Proxy. Why not KW? There is a cancer in the boardroom and shareholders deserve an answer. What are you hiding Dumb Cowards?

Nice analysis by bencutloose in Sprint Connection. The Troll will provide additional insight on Exec Compensation and Leadership in a soon to be released post.

the Troll has awakened

The Troll has been on vacation for a while, but since he was called out in a SprintConnection post, the Troll has awakened.

The Troll has always felt Sprint had a solid network and the JD Powers report reflects this. This makes it even more perplexing as to why S is in the position it is in. Can you say Dumb Cowards? The Troll does find it intriguing how passionate the S lovers are to grab on to any piece of good news. As the Troll has said before, S will be bankrupt, or very close to it, within two years. The Powers report may be good news, but where are the news reports about subscriber losses, lower ARPU, iPCS suit implications, 20 Billion Dollars of debt, Clearwire impairments, lack of investment in infrastructure….do you want the Troll to go on?

Out of Sprint, Verizon, AT&T, Metro PCS, Leap, and T Mobile which is the only company to have lost subscribers in 2008? Sprint, with about 5 million. Which is the only company expecting more losses in 2009? Sprint again. But the spin is that S will lose less than in 2008, perhaps 4 million? And this is a good sign? Which company has the highest churn? Sprint. Which company has the most decline in ARPU? I’ll let you figure that one out. Meanwhile, AT&T and Verizon are investing huge amounts in network upgrades while Sprint is cutting their budget in half, outsourcing network ops, and laying off big numbers. Do you think things are going to get better?

The answer is it can’t get better. Sprint’s own management is expecting major declines in revenues and subscriptions in 2009, despite desperate attempts to cut costs. The iPCS lawsuit will force major subscription losses or result in some sort of heavy cash settlement. A little discussed fact is that S is again taking on poor credit customers. At $500 per head, this will have even worst results in today’s economy than it did under Forsee. Sprint’s investment in Clearwire, almost $8 billion worth, has declined by more than 75%. The other partners have already taken impairment charge and S will be forced to do the same. As a result, Sprint’s debt ratio will suffer and S debt holders will be able to exercise covenants that will result in higher payments or, if things are really bad, force a sale or bankruptcy filing. Any impact from the bug-laden Pre will be short-lived and be more than offset by customer defaults. Verizon will be selling it by this time next year anyway. Unfortunately, the small strides in customer service and network ratings are inconsequential at this point.

The biggest indicator of Sprint impending demise however is the behavior of the Dumb Cowards. We have already seen KW take a package (illegally I may add). Others including Hesse, Brust, and Elfman have structured their contracts and bonuses for hefty payouts over the next two years, with the Board’s complicit negligence. Moreover, Hesse likes to talk about having enough cash to get through the next two years, but you notice he does not talk about Sprint’s future beyond this time. With the media these days talking about the likes of AIG and Bernie Madoff, it’s hard not to liken them to the Dumb Cowards who are systematically robbing this company’s coffers.

Time to take matters into our own hands

The Troll has not heard any response from S Corporate Governance Board regarding KW’s unlawful $4 million severance and has decided to take matters into his own hands. The Troll has submitted a written complaint to the SEC and invites others to partake in this effort. On the SEC website, there is a form and email address to report securities laws violations (http://www.sec.gov/complaint.shtml). Because S filed an unlawful SEC report stating KW was terminated without cause, which we now know is not true, the Dumb Cowards likely violated the law. Additionally, the Troll sent an email to Amol Sharma of the WSJ with details of the transgression. Mr. Sharma has been an active player in the past with reporting on S and the Troll hopes he can give attention to our cause. The Troll will report any feedback he receives on this board. Stay posted.

The Troll says welcome...

The Troll says welcome. The Troll created this blog as a way to affect change at S through a call to action amongst fellow S stakeholders. Initially, a casual reader of Sprint Connection blog, the Troll sensed an opportunity to tap into the knowledge and discontent of fellow bloggers as a way to force action. S is in a mess, caused by it's own stupidity and exacerbated by the downtrodden economy. The execs are incapable of turning this mess around. Through dumb decisions and cowardly actions, they have stripped the value of this company by many billions. And they are still in control. This has to end now.

The Troll encourages you to read the Feb 4 posting originally published on Sprint Connection but now archived in this blog. The first call to action by the SprintTroll community is to stop the $4 million of unwarranted severance to Kathy Walker. This is an illegal act as outlined in S proxy statement for 2008 and detailed in the Feb 4 post. The Troll is excited about the buzz this has created on Sprint Connection and encourages you to write the Corporate Governance BOD expressing your dismay. In the coming weeks and months the Troll, with your input, will look into other ways to bring down the Dumb Cowards, first by instituting a Constitution for the SprintTroll movement; nominate a leadership team to ultimately advise on the replacement of the BOD, and develop an action plan to move our ideas forward. It's time to make history. We are in the right place at the right time to control our destiny. The good ole boys in the boardroom and executive offices better get out while they can. The days of executive incompetence and greed are numbered and the SprintTroll community will lead the charge.

The Troll says it doesn't matter..

The Troll says it doesn't matter how good the Pre is. The affects on S long-term will be negligible. As usual, S management is behind with market trends. It's no longer about the device or the network. It's about device applications. The iPhone and to a lesser extent Google are the dominant players in the phone application business. It's unlikely there is room for a third platform, and if there were it would take two years for Palm to catch up. By that time, S exclusivity with the Pre will be long gone, and Palm's next generation exclusivity agreement will be with another carrier, a la the Instinct.
The Pre may help maintain some existing customers who are considering switching. But overall the affect will be small.
Stay tuned for a new blogsight featuring the Troll. And don't forget to write the Corporate Governance BOD re: Kathy Walker's illegal $4mil buyout. the Troll

The Troll is angry. He has read with much interest the posts on this blog and believes something needs to be done now to send the Dumb Cowards into exile. They are complete buffoons of the highest order. It’s time to outsource management.
Historically, change in corporate America has generally been fueled by outrage at the grass roots level. Whether it is the exploitation of labor that formed the union movement or angry consumers pushing back against monopolistic practices, free capitalist societies evolve from the bottom-up, not from the top-down as many corporate theorists would like us to believe.
The traditional corporate oversight system as it relates to executive pay is broken. We see it everyday, and it is even more evident in today’s economic climate. The Troll’s not sure how it got to this point; greed is certainly one factor, perhaps shareholder apathy another. Nevertheless, the situation has reached a tipping point and it is time for Sprint stakeholders to act.
There is one action that can be taken immediately and the Troll credits the poster who revealed the details on the release of Kathy Walker. In his/her post, Steve Elfman stated on a conference call that KW came to him and announced it was time for her to go. However, the official announcement is that KW was terminated without cause. What’s the big deal you may ask?
THERE IS A DIFFERENCE OF 4 MILLION DOLLARS. THIS MAKES THE TROLL VERY ANGRY!
On Sprint’s very own public website, the proxy statement reveals that in 2007 if KW had left voluntarily, as Elfman suggests, she would be entitled to “only” $330k of her STI. If she were terminated without cause she would have been “owed” $3,072,838, a difference of approx 2.7 million. Furthermore, she would have received 18 months of her base pay at $780k per year and additional stock options and health benefits. Oh yeah, she also will get outplacement help! As the Troll has mentioned before, KW was a HR exec and she knows how the system works. It is the Troll’s belief that KW left voluntarily. Right now, she’s Dumb Coward #2 not far behind Forsee.
Action needs to be taken on this matter immediately. The initial course of action will be to contact Board Member James Hance at boardinquiries@sprint.com . Mr. Hance is chairman of corporate governance at S. The Troll encourages all of you who are concerned about this issue to contact Mr. Hance and demand action. Keep in mind, the emails are not anonymous, so if you are an employee or not comfortable using your name, you may want to use an anonymous address. In the likely event that nothing happens, the Troll will approach the SEC and seek additional legal advice on shareholder remedies.
Folks, we have a chance to make history. Although out-of-control exec compensation is not unique to Sprint, this company is in the distinctive position of having the worst executive pay vs. performance of any Fortune 500 company. These dumb cowards make Blagojavich look like Mother Teresa. They are taking desperate measures to avoid bankruptcy for fear of losing their golden parachutes. Employees and shareholders are angry.
In future posts, the Troll will detail plans to form a blogsite where we can have a more thorough exchange of ideas amongst ourselves and other professionals in the legal and corporate governance fields. In addition, in the coming weeks we will draft a constitution, nominate a proxy BOD, and discuss an action plan to move our ideas forward in a way that is consistent with the capitalistic ideals of this country. Now is the time for us to unite, push the slime to the curb and usher in a new era of responsible well-meaning leaders, not just at S, but in corporate board rooms around the world. the Troll

The Troll wonders if...

The Troll wonders if getting laid off now is the best case scenerio for S employees. Each individual case is different, but lets do some analysis. To answer this question objectively, one has to look at the future of the company. Despite being flush with cash at the moment, Sprint cannot sustain it's current level of suscription losses through 2010. Large debt payments come due at that time and the current cutbacks may not be enough to prevent Chap 11. But the Troll isn't telling you anything you don't already know. So let's dig a little deeper. What happens if S goes into bankruptcy? Severance packages will be cut drastically and no bonuses paid. Who stands most to lose?...you guessed it. The fat cat cowards. They are entitled to at least 1 year severance and 80% of their STI regardless of company performance (and their STI targets are huge!). So what are the fat cat cowards doing? Let's see, Mr. Hesse renogtiated his contract to get more cash upfront. KW took her package now. Let's not forget she was an HR person before becoming chief "engineer" and surely understands what she has to lose should S go belly up. Don't be suprised if more execs start running for the hills. Of course the company will spin this as the fashionable catch phrase of the day, "change". But we now know the real reason! Surely the execs, I mean cowards, believe there is a significant risk of bankruptcy and those who remain will want to keep it afloat long enough to find a buyer. Hence, the desperate pricing plans...boost $50 unlimited plan, nextel business plans, and don't be suprised if you see the $99 plan come down another 20%. Nevermind what this does to S long-term ARPU. The goal is generate cash now. The Pre will help very little. The new gadget phase is at the end of it's lifecycle. Now it's all about device applications and the Pre is two years behind Apple and Google. Once again dumb S execs are behind the rest of the industry. To summarize, S will continue to lose customers in droves, the cowards will try to do anything and everything to stave off bankruptcy, S will run out of cash by end of 2010. Back to you...what should you do? You may consider yourself lucky to make the cut. But if you have a significant severance coming to you, there is a risk of losing much of it in Chap 11. Also, if you are outsourced to a contractor, you are faced with a similar scenerio. You may be able to keep a job for one year, but aferward all bets are off. And, as long as the contractor pays you up to 90% of your salary (including STI target...keep that in mind when the time comes), you are not allowed to turn it down and claim severance benefits. To summarize (again), is it worth to stick around, take on extra work, not get an increase, get limited STI, and potentially risk a majority of your sev package? It's a personal decision; times are tough. One thing we know for certain. The cowards are not going to look after you. Do what's best for you and don't look back. Best of luck, the Troll.

Hello Folks, this is the Troll

Hello Folks, this is the Troll. I will be enlightening you in the coming weeks on this blog as to the way of the world in S. First thing to know is that upper management and BOD at S are cowards. How many of the employees out there are being told about what a great job you're doing? Well, if all doing such a great job, then management must really be screwing up. But who do they fire when the going gets tough? You the employee. Sure, they'll let go of a vp here and there as a show of unity. But look at the tenure of the VPs and Directors. They've been around FOREVER. And most are DUMB! and get paid a lot of money for being dumb. Has anyone looked at S severence policy lately? When a Director or VP get let go, they get 80% of their STI target. Plus, VP's get one year of their fat salaries on top of that. Trust me, they aint the one's taking the hit. Also, it's unfortunate the debate on this board on foreign labor seems to have a xenophobic tinge to it; however, there is some validity to the argument that S has acted irresponsibily and perhaps fraudulantly in it's hiring practices. In the last 3 years, according to Dept of Labor stats, S has applied for 1150 H1B visas at a time when the company has been in distress and laying off workers. Although perhaps not illegal per the letter of the law, it sure does violate the spirit of the law and the intent of the H1B visa program. I will write more on this later with possible remedies, i.e class action. In the meantime, just know that upper management doesn't give a rats behind about you the worker. Yes, they will tell you what a good job you're doing and about how much they care about you. They have to. But in the end it's you they will throw under the bus as only a coward can do. the Troll