Nov. 28 - AT&T CEO Randall Stephenson pushed the planned acquisition of T-Mobile and should lose power or receive a pay cut if the deal fails, according to Breakingviews' Rob Cyran.
AT&T is preparing for the possibility its planned purchase of T-Mobile won't receive approval from US regulators. Companies that it may take a four billion dollar charge in the fourth quarter in connection with the deal -- breaking news columnist rob siren things. The AT&T CEO should pay the price. Personally if the deal fails. Rob good to see you substitute let's start first about the deal prospects is something that's been circling around for a couple of days does it come down to this lawsuit wit to. Justice -- it comes -- -- two things DOJ this through with the DOJ and also -- the FCC both agencies have to approve the deal and both seem very very skeptical to say the least of the deal the DOJ is sitting in court to block it. And AT&T actually polled. There qwest had the FCC look over and yet -- you know you can't pull it we're gonna keep Alitalia or Italian you know they think that it. So -- this thing. How this CEO pay the price and -- -- as if it fails of course. If it does you know this is basically his baby he's agreed to pay at a huge. And not break fee if this doesn't go through it's about six billion dollars in total. That the actual amount beside us for tax reasons but. If if -- taken place AT&T would have done very well and and of course Randall Stephenson would have had a huge pay package like he's had over the past couple of years. And he would have received the benefits of running a larger company more profitable company. As it is eighteen to shareholders are gonna pay out like -- at about six -- six billion dollars to team Obama. So it makes sense that as the architect he should also see hit. You know he received about 27 -- twice a million dollars last year compensation. The packages were -- twice and nine. -- should probably say cut I'm furthermore what they should probably do is you need to it's it's always best to have a different chairman running the board than this seat and chief executive. It's just everyone needs oversight. And in this case you have Randall Stephenson has both. CEO and chair which is actually common in America but -- -- -- the best thing. It would make sense to put someone else in charge of the board. Some routes to get him there ha -- well he's he's done -- done good things over the past several years like you brought the iPhone to AT&T you know the shares have done. Reasonably well about this enthusiast and he. That said you know you don't if you sign up a bit if you if you're basically paying out several billion dollars to a competitor. That's a bad idea. Well won't he go just be more cautious going forward if that would happen if he gets penalized me so it doesn't make twice that night was a cap that they could live comfortably on that shore. What that sort of rain in some of his ideas. Or some other way that might be a good thing and -- You're seeing here the problem is that you know you wanna make you wanna encourage him to make that switch or rational. But the same time you don't want you don't want to make irrational bats this -- doesn't seem as if it was a very good idea from the start I mean he talked ever -- ever has surprised and thought. There's no way to do -- -- through what is AT&T knows that we don't know turns -- they didn't know anything. -- -- -- Whether we get you some leverage to -- it. You know anything. The problem is now of course you want it easy it receives social receives a huge account options in cash and has lots of options vested options and stock that has. So he will still benefit if he does a deal which benefit shareholders. Breaking news -- Aaron thanks for Iraq. I'm Rhonda schaffler this is writers.