AT&T (NYSE: T) CEO Randall Stephenson will forgo his bonus and will freeze the salaries of 120,000 managerial employees this year, as tough times require the company to cut back. Reuters reported that employees were alerted to the changes in a memo sent out on Friday.
AT&T wouldn’t tell Reuters how much Stephenson’s bonus amounted to, but it’s typically 25 percent of his overall compensation, and in 2007, it totaled $4.5 million. It is unclear if the freeze will affect all divisions, however, wireless continues to be a bright spot. In December, AT&T said it would cut 4 percent of its workforce, or about 12,000 jobs, but that it would be staffing up in areas such as wireless, video and broadband.