Subject: [NEXTEL-1] Nextel Got Big Bill From Deloitte In 2002 for Its Nonauditing Work ($18.7 million)

From: Marcel <[email-masked]>
Date: Tue, 01 Apr 2003 10:04:55 -0500

Nextel Got Big Bill From Deloitte In 2002 for Its Nonauditing Work

By JESSE DRUCKER
Staff Reporter of THE WALL STREET JOURNAL

Deloitte & Touche LLP, auditors for Nextel Communications Inc.,
billed the wireless carrier $18.7 million for nonauditing services last
year, nearly nine times as much as it billed for auditing the company,
according to the proxy statement Nextel filed with the Securities and
Exchange Commission on Monday.

Auditing firms have been under criticism for promoting nonauditing
services to the companies they audit because corporate-governance
experts argue that providing these services can undermine an auditor's
independence.

The nonauditing services included tax services, financial information
systems design, and audits of Nextel's employee benefit plans. Deloitte
billed Nextel only $2.1 million for auditing its financial statements.

The ratio between audit and nonauditing bills is considered high,
although it is significantly lower than in 2001, when Nextel paid
Deloitte more than $35 million for nonauditing services.

"The audit committee has determined that the provision of ... nonaudit
services to us by Deloitte & Touche is compatible with maintaining their
independence," Nextel said in its proxy statement.

The Reston, Va., company, which turned its first ever annual profit last
year, nearly doubled the combined salary and bonus paid to its chief
executive officer, Timothy M. Donahue. He received a total salary and
bonus of $2.2 million. His salary was $697,115, up from his 2001
salary of $511,308. He also received a bonus of $1.5 million, up from
$695,625 in 2001, and a long-term incentive plan payout of $675,000.

Chief Financial Officer Paul N. Saleh was paid a salary of $495,994
and a bonus of $765,000, both higher than 2001. He received other
compensation totaling $177,990, consisting of loan forgiveness,
relocation expenses and use of corporate aviation services.

The biggest payout went to Nextel's former chief operating officer,
James F. Mooney, who resigned for personal reasons last year. In
addition to salary and bonus totaling $1.1 million, the company forgave
the $2 million remaining balance of a loan, gave him $550,000 in
severance benefits and an additional $643,125 for agreeing not to
compete with the company. He received other compensation totaling
$661,042, related to loan forgiveness, imputed interest and relocation
expenses.

He also received restricted stock awards valued at $502,000 and
realized $593,091 from exercising options.

http://online.wsj.com/article_email/0,,SB104916704722645400-search,00.html?collection=wsjie%2F30day&vql_string=nextel%3Cin%3E%28article%2Dbody%29

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