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
Tuesday, March 31, 2009
Monday, March 30, 2009
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.
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.
Monday, March 23, 2009
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.
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.
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