Two Sprint Nextel Directors Won’t Seek Re-election; Were Criticized By Analyst

Sprint (NYSE: S) Nextel said today that two of its directors have notified the company that they won’t stand for re-election at its annual shareholders meeting in May. The directors faced criticism by an analyst last month who called for their removal, along with two others. Director Keith Bane notified the company on March 11 stating personal family medical circumstances, and director Linda Koch Lorimer told Sprint three days later that business commitments and schedule conflicts prohibited her from serving again, according to a SEC document filed today.

In a well-distributed research note, Pali Research Analyst Walter Piecyk offered harsh criticism of Sprint’s board, and gave an extensive list of reasons why four directors in particular should be considered for dismissal. He wrote: “This Board needs to change. Dan Hesse needs help. Ralph Whitworth needs help. There are two very obvious choices for removal: Irvine Hockaday and Linda Koch Lorimer. We also believe Gordon Bethune and Keith Bane should be targets…We believe that Hesse, Whitworth and one or two other board members (that we actually have faith in) will be able to bring in value-added fresh blood upon the departure of these weak board members.”

Piecyk said the primary reason is that they oversaw a host of bad decisions, including:

— Acquisitions totaling $30 billion that were written down significantly.
— Gary Forsee

Comments have been disabled for this post