William Esrey
Encyclopedia
William T Esrey is an American
businessman best known for his time as Chief Executive of Sprint Corporation.
in 1957, Denison University
in 1961, and graduated from Harvard Business School
in 1964.
Esrey began his career in telecommunications in 1964 with AT&T
. After becoming the youngest executive officer in the history of the company, Esrey left in 1970, joining investment banking firm Dillon, Read & Co.
in New York
where after one year he became a managing director. It was at this point that Esrey considered turning his back on business and going to medical school, having had an interest during his teenage years when taken under the wing of a Kansas City physician. Esrey was given a close-up look at the day-to-day work of a doctor, but decided to stay in business
It was at this point that the accounting firm Ernst & Young
, Sprint's auditors, offered Esrey and Sprint COO Ron LeMay a scheme whereby the income taxes on their stock-option profits disappear for 30 years. Esrey and LeMay handed Ernst & Young
$5.8 million to set up a tax shelter for their option income. But the tax shelter was not legal according to the IRS. Esrey and LeMay found they could owe over $100 million in taxes.
Sprint asked Esrey and LeMay to resign, releasing LeMay with just $190,400 in severance each month for the next eighteen months, and consulting fees that brought his total exit package to $5.8 million. Sprint formally announced Esrey’s departure with a package worth at least $10.5 million.
Esrey was a trustee of the University of Kansas City, a trustee of the U.S. Ski and Snowboard Team Foundation, a director of the Heart of America United Way and the NCAA Foundation. Esrey belonged to the Mission Hills Country Club
, Eagle Springs Golf Club, the River Club, the Links Club, and the Kansas City Country Club
.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman best known for his time as Chief Executive of Sprint Corporation.
Biography
Esrey attended Swarthmore CollegeSwarthmore College
Swarthmore College is a private, independent, liberal arts college in the United States with an enrollment of about 1,500 students. The college is located in the borough of Swarthmore, Pennsylvania, 11 miles southwest of Philadelphia....
in 1957, Denison University
Denison University
Denison University is private, coeducational, and residential college of liberal arts and sciences founded in 1831. It is located in Granville, Ohio, United States, approximately 30 miles east of Columbus, the state capital...
in 1961, and graduated from Harvard Business School
Harvard Business School
Harvard Business School is the graduate business school of Harvard University in Boston, Massachusetts, United States and is widely recognized as one of the top business schools in the world. The school offers the world's largest full-time MBA program, doctoral programs, and many executive...
in 1964.
Esrey began his career in telecommunications in 1964 with AT&T
AT&T
AT&T Inc. is an American multinational telecommunications corporation headquartered in Whitacre Tower, Dallas, Texas, United States. It is the largest provider of mobile telephony and fixed telephony in the United States, and is also a provider of broadband and subscription television services...
. After becoming the youngest executive officer in the history of the company, Esrey left in 1970, joining investment banking firm Dillon, Read & Co.
Dillon, Read & Co.
Dillon, Read & Co. was a prominent American investment bank from the 1920s into the 1960s.-Origins:Dillon Read traces its roots to 1832 with the founding of the Wall Street brokerage firm Carpenter & Vermilye. This firm was succeeded by Read & Company in which chief principal was William A. Read. ...
in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
where after one year he became a managing director. It was at this point that Esrey considered turning his back on business and going to medical school, having had an interest during his teenage years when taken under the wing of a Kansas City physician. Esrey was given a close-up look at the day-to-day work of a doctor, but decided to stay in business
Sprint Telecom
In 1980, Esrey joined United Telecommunications as the executive vice president of corporate planning. In 1982, he became president of United Telecom Communications Inc., later named US Telecom. In 1985, Esrey was made president and CEO of United Telecommunications. In 1990, he became chairman of the company, which had now changed its name to Sprint. During his time in charge of Sprint, the company developed from a rural telephone company into a multi billion dollar international corporation. Esrey served as Chairman of the Board for Sprint and United Telecom from 1990 to May 2003. He received many honors and awards and Business Week named him one of the top 25 business leaders in the world .In 1999, the board agreed to a merger with WorldCom, which failed due to antitrust concerns.Tax
During his time as CEO and Chairman with Sprint, Esrey was paid an average of $25.5million per annum, including cash, bonuses and stock options. Most of this "income" was in stock options whose value was not realized due to the tech crash in 2000. Esrey earned a seven-figure salary, with annual bonuses ranging from $220,000 to $1.38 million.It was at this point that the accounting firm Ernst & Young
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
, Sprint's auditors, offered Esrey and Sprint COO Ron LeMay a scheme whereby the income taxes on their stock-option profits disappear for 30 years. Esrey and LeMay handed Ernst & Young
Ernst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
$5.8 million to set up a tax shelter for their option income. But the tax shelter was not legal according to the IRS. Esrey and LeMay found they could owe over $100 million in taxes.
Sprint asked Esrey and LeMay to resign, releasing LeMay with just $190,400 in severance each month for the next eighteen months, and consulting fees that brought his total exit package to $5.8 million. Sprint formally announced Esrey’s departure with a package worth at least $10.5 million.
Other positions
Esrey held positions as:- The Equitable Life Assurance Society of the United States - Director
- General MillsGeneral MillsGeneral Mills, Inc. is an American Fortune 500 corporation, primarily concerned with food products, which is headquartered in Golden Valley, Minnesota, a suburb of Minneapolis. The company markets many well-known brands, such as Betty Crocker, Yoplait, Colombo, Totinos, Jeno's, Pillsbury, Green...
- Director, since 1989 - Japan TelecomJapan TelecomSOFTBANK TELECOM Corp. Japanese: , previously as , is a Japanese telephone company of the SoftBank group. It is a load in JNR in the origin. It provides services to businesses and consumers in Japan. It provides long-distance telephone service, international call service, and direct connection...
- Chairman - Panhandle Eastern Corp - director
- Sprint Corporation - Chairman Emeritus
Esrey was a trustee of the University of Kansas City, a trustee of the U.S. Ski and Snowboard Team Foundation, a director of the Heart of America United Way and the NCAA Foundation. Esrey belonged to the Mission Hills Country Club
Mission Hills Country Club
The Mission Hills Country Club is a country club located in Rancho Mirage, California, United States. Among the facilities at the club are 3 championship golf courses, 27 tennis courts of various surfaces, a spa and sports center....
, Eagle Springs Golf Club, the River Club, the Links Club, and the Kansas City Country Club
Kansas City Country Club
The Kansas City Country Club, founded in 1896, is a country club in Mission Hills, Kansas, USA, an affluent suburb of Kansas City, Missouri. It is the club for which the Country Club District and the Country Club Plaza of Kansas City are named...
.