chief to leave after merger
By Bruce Meyerson, Associated Press
Rocky Mountain News
Friday, November 11, 2005
NEW YORK - AT&T Corp. Chief Executive David Dorman confirmed
expectations Thursday he will not stay on long after AT&T is
acquired by SBC Communications Inc., opting for $10.3
million in severance pay and a lucrative consulting contract
rather than a subordinate post at the combined company.
Dorman, 51, also chairman of AT&T, will serve as president
of the merged company and a member of its board of directors
"for a brief transition period," after which he will resign
from both positions, SBC said in a statement outlining the
post-merger management team.
Edward E. Whitacre Jr., SBC's chairman and CEO, is slated to
hold both of those posts at the combined company, which will
assume the AT&T corporate name and brand.
Randall L. Stephenson, Whitacre's top deputy and heir
apparent before the deal was announced, appears poised to
retain those distinctions despite the initial suggestion
that he would hold a post subordinate to Dorman after the
merger. Stephenson, 45, will hold the same title at the new
AT&T, chief operating officer.
"Dave made it clear that he wanted to be considered as Ed's
successor, and that's not going to happen according to the
SBC board's management succession plan," AT&T spokesman
Andrew Backover said. "Dave respects the board's decision,
wishes the new AT&T the very best and will work hard to make
the transition a smooth one."
In addition to severance pay, Dorman will receive early
access to $17.7 million worth of options and shares that he
would have received over the next several years, based on
the $19.71 value assigned to AT&T's shares in the SBC merger
Dorman will forfeit $7 million in performance-based stock.