AT&T CEO Randall Stephenson won't claim a bonus for his 2008 performance, and as many as 120,000 managerial employees will not receive raises during 2009.
The moves come as the company is cutting 12,000 jobs, and even though its fourth-quarter and year-end earnings report was fairly positive, AT&T officials were cautious about their outlook for 2009.
It should become clear from the SEC filings in the coming weeks how much Stephenson stood to make, but for comparison's sake, he had a $4.5 million bonus for a half-year of performance in 2007 (and several million dollars more in stock rewards and other perks).
The decision also comes at a time when executive bonuses in the much more troubled financial industry have been criticized by President Obama, and could get some companies and their leaders dragged into court.
Some of you may be saying that it's about time. Other may say it's a no-brainer. In any case, Stephenson's decision should be applauded.