How many times over the last several years have we been graced with the smiling countenance of Gary Forsee beaming out from the pages of The Star? And always, the article associated with the photo told of the millions in bonuses he’d received, while thousands of Sprint employees were laid off.
Forsee goes on to lead Sprint to the brink of ruin, and he was handsomely rewarded with $40 million in compensation last year and a million a year for life. Now he’s in a position to reap up to $500,000 a year from the University of Missouri.
Considering what Forsee’s management abilities did for Sprint, one wonders if the term rape isn’t more appropriate than reap. I’ll wager that as long as Sprint keeps mailing him checks he couldn’t care less about the future of Sprint or its shareholders.
The boards of directors of all corporations need to be made aware that retirement packages like Forsee’s, assumed necessary to attract and keep talented executives, are, in fact, a disincentive for performance.
Shareholders need to read their proxy statements, vote accordingly and complain to their company directors, the Securities and Exchange Commission and their representatives in Congress, if necessary. Financial abuse by corporate executives has to stop.
I’ve been a Sprint cellular customer for more than a decade. I, too, have dealt with frustration brought on by Sprint’s customer service challenges and customer-perceived bait and switch sales tactics.
While most of my professional colleagues switched to other providers, I stayed with Sprint in support of local jobs. However, the recent disclosure of ex-CEO Gary Forsee’s golden parachute buyout is too much.
According to The Star (3/28, A-1, “Forsee walked away with $40 million, with more to come”), Mr. Forsee’s reward for flying Sprint/Nextel into the ground is an estimated $40 million payout and $1 million dollars a year for life.
While thousands of hardworking Sprint associates lose jobs, Mr. Forsee gets rewarded. I’m amazed there’s not been more public outrage. Or maybe regular folk are just numb to this corporate insanity.