Telecom Investors: Can You Hear Us Now?

Editor's note: This is the fourth story in an occasional series exploring the rise in shareholder activism and its impact on U.S. corporations amid the economic downturn. The first explored reasons behind the trend. The second detailed efforts by investors to rein in soaring executive compensation. The third looked at the battle being waged to get shareholder proposals on company ballots.

Shares of Sprint-Nextel(S Quote) have tumbled more than 70% since 2005, as the third-largest U.S. wireless operator has seen customers flee to rival carriers.

For his effort overseeing such performance, then-Chairman and CEO Gary Forsee lost his job -- but gained a small fortune. He saw his 2007 salary nearly double to $40 million, including stock and option awards, from the year before. In addition, he will receive nearly $84,000 a month for the rest of his life thanks to a separate pension he negotiated when he was hired according to the company.

While much of the shareholder outrage this season has focused on banks and financial companies like Citigroup(C Quote) and Merrill Lynch(MER Quote) decimated by the housing and credit crunch, telecom CEOs are among the most notorious for the widening gap between pay and performance year after year. And while financial executives have enjoyed a long run of prosperity, CEOs and directors at telecom companies have largely presided over flagging business while raking in increasingly generous pay in the wake of the 2001 tech bubble and WorldCom scandal. ...