I. Nacchio’s Financial Gains Before His
Resignation
Gains From Qwest Stock Sales and other Special Deals
According to court records and SEC information, prior to his
resignation, Joseph Nacchio as CEO and Chairman of Qwest received the
following proceeds:
$ 213,477,043 proceeds from sale of Qwest stock
$ 1,000,000 proceeds from alleged IPO spinning
$ 550,648 proceeds from selling Tellium shares - special deal
$ 1,082,648 proceeds from exercising Tellium special shares options
$ 1,153,133 proceeds from selling Chromatis shares - special deal
$ 1,386,719 proceeds from selling CoSine shares - special deal
II. Nacchio’s Financial Gains After
His Resignation and Consulting Agreement
On June 17, 2002, Nacchio resigned as CEO and Chairman of Qwest.
Qwest agreed that there was no ‘cause’ for ending Nacchio’s employment and,
therefore, he should receive, pursuant to his October 24, 2001, employment
agreement with Qwest, and a special “Resignation and Consulting Agreement”
dated June 16, 2002, the following payments:
$ 10,500,000 immediate cash severance package
$ 1,726,027 immediate cash accrued obligations payment
$ 3,000,000 consulting payments ($125,000 per month for 2 years)
$ 600,000 pay for professional advice/publicity ($200,000 per year
for 3 years)
$ 75,000 reimburse his legal fees to negotiate this contract
$ unknown office and secretary support for 2 years
$ unknown executive level retiree medical benefits for life
$ unknown executive level telephone concession for 10 years
$ unknown pay all legal fees and expenses to defend against all lawsuits
In addition, Qwest agreed to extend the expiration dates on 4.6 million
stock options previously granted to Nacchio with a strike price of $5.50 per
share and an expiration date of June 22, 2003, so that those options will
now expire on June 22, 2007.
