Sprint Filings

If you were to google "Robert H. Brust & frugal" (go ahead, I'll wait), you'll get 533 results. None of the results, however, actually talk about Bob Brust being frugal. That is a good thing because his contract is anything but thrifty. Of course, there is nothing wrong with that as "Bob Brust is an experienced, respected financial leader with the right skills to lead Sprint's financial team." Straight from Dan Hesse's mouth to your eyes. Not only that but I hear he plays a pretty mean round of golf.

Of course, when you bill yourself as an economically sound, penny-pinching spendthrift who is making tough financial decisions you might want to - oh, I don't know - follow your own advice. Unless, of course, you want to look like a hypocrite. And maybe that's his plan. Either way, let's take a look...

Mr. Brust, according to a Bloomberg News article from Dec 2008, intended to save "about $40 million by closing cafeterias, buying fewer office supplies and putting printers in storage." He even took pens from a hotel to bring back to Sprint campus as (presumably) a metaphor of cost-cutting measures. Obviously, he means business. So much so he said, and I quote, “The message is, we really have to be serious about this, because we are in an economic event that nobody understands.” Of course, it doesn't speak well of your Chief Financial Officer if he doesn't understand the financial crises but I digress. Anyways, in light of Sprint's struggles that is absolutely the right thing to do. Come in and lay down the law. Rule with an iron fist. Lead the charge against waste! I imagine that, even right now, he's stooped over his desk laboriously reviewing TPS reports, mumbling incoherently, and furiously scribbling on the reports in red ink. Anything in the name of savings!

So, it comes as a bit of surprise that Mr. Brust took $601,338 worth of flights in 2008 for "non-business use of our corporate jet and use of chartered jets." Not only that but "family members of Mr. Brust occasionally accompanied him on our corporate aircraft at no...incremental cost to us" (Sprint). Now, I'm not a pilot but last I checked, additional passengers on a plane do indeed raise the costs of a flight especially when the flights are chartered. But, even if I concede that point, that is still some chutzpah; over 600k worth of personal benefits in one hand while taking 2 cent pens for Sprint's benefit in the other.

Of course, one could make the argument that, while maybe not ideal behavior, there is nothing wrong with it. Nothing wrong with it from a moral standpoint. Of course, you could also argue that strangling a hooker is really a form of community service. And, actually, I contend that it is as hookers are not really people but soulless devils spawned from hell. But, umm, where was I? Oh, some may say my characterization of Mr. Brust as a hypocrite is unjust and unfair. And that's why I will now debate myself on the topic in my Point vs. Other Point segment.

• Point: "Mr. Brust fairly and honestly negotiated that perk into his benefits. Sprint came to him on hands and knees begging for his help. His expertise avoided a financial calamity. Without this perk, maybe Sprint does not get Mr. Brust and everyone is worse off for it."
• Other Point: "I think Sprint did more than beg while they were on their knees asking for his help. But, to your point, maybe they did avoid financial ruin by hiring Mr. Brust. Maybe it was a brilliant strategic move by leadership and the Board. Yet something still doesn't quite seem right to me.."
• Point: "And what's that? That you cannot give credit to the Board for approving such an outstanding hiring?"
  
• Other Point: "No, the fact that such a move was even necessary in the first place. When all is said and done, Sprint paid out tens of millions to the previous CFO's, Paul Saleh and William Arendt. Why would Sprint be in such financial dire straits unless they performed particularly poorly? Is it not duplicitous that, a CFO who makes millions of dollars of cutbacks, is okay with spending 600k of Sprint's money for personal, non-business use flights? Bob, if you are going to ask people to make financial sacrifices then you, as the financial leader of the company, should also make sacrifices. In doing so, maybe you actually have a chance not only at good PR - which is priceless right now - but to also inspire the down-trodden masses that work at Sprint. In the long run, the gain from such a move would greatly outweigh any short-term pain you may experience. That is the essence of true leadership."