Qwest VP exercises stock options
By Jeff Smith
Rocky Mountain News
Tuesday, June 19, 2007
Retiring Qwest Executive Vice President Barry Allen, who sold $6
million of stock last year, netted an additional $5.4 million by
exercising his remaining vested stock options, according to a
regulatory filing late Friday. "It's part of his overall
compensation program," Qwest spokeswoman Diane Reberger said
Monday. "Because he's retiring at the end of the month, he has
a limited amount of time (90 days after his June 29 retirement
date) to exercise these options."
Reberger noted Allen "left on the table" 350,250 unvested
restricted shares valued at $3.4 million, and 639,000 unvested
options worth $1.35 million, based on Friday's closing price.
In addition, Allen owns 100,000 Qwest shares he bought shortly
after joining the Denver telco in the summer of 2002, 37,000
shares from a restricted stock award, and 4,000 shares from the
employees 401(k) retirement program, she said.
Allen is one of three top executives who have left or are in the
process of leaving Qwest. CEO Dick Notebaert announced his
retirement last week, rattling investors, but will stay until
his successor is named. Former Chief Financial Officer Oren
Shaffer retired earlier this year.
Some shareholder groups and watchdogs have been critical of the
compensation the three received at Qwest. Notebaert, for
example, earned $104 million during his five-year tenure,
including unrealized stock profits.
The three also received extra pension benefits for their time at
Ameritech, where they previously worked and became friends. For
Allen, the Ameritech credit added 23.8 years to his service time
and $2.9 million to the estimated $3.9 million Qwest pension.
Qwest has defended the compensation packages as necessary to
attract the three out of retirement at a time the company and
the telecommunications industry faced hard times.
smithje@RockyMountainNews.com or 303-954-5155