Embattled Qwest chief executive resigns
Published: 17 Jun 2002 09:08 BST
Qwest Communications' chief executive Joseph Nacchio has resigned at the request of the board, according to published reports.
During a board meeting late Sunday, Qwest directors reportedly named Richard Notebaert as the company's new chief executive. Notebaert is the former head of Ameritech.
Qwest executives could not immediately be reached for comment.
Nacchio's departure comes as Qwest is being investigated by the Securities and Exchange Commission for its accounting practices. Qwest stock has fallen more than 92 percent since its high of almost $58 (£40) in July 2000.
Nacchio, 52, was the target of shareholder ire earlier this month at the shareholder meeting. They complained angrily about what some called Nacchio's "outrageous" compensation at a time when Qwest's stock price has plummetting.
Qwest said in April that it had paid Nacchio more than $27m last year, excluding stock options, which was more than six times his $4.22m pay in 2000.
Nacchio's departure was first reported by The New York Times and The Wall Street Journal.
Qwest announced Thursday that it filed for permission with the Federal Communications Commission to offer long-distance phone service in five of the 14 states where it already provides local service. The telecom carrier is seeking regulatory approval to offer service in Colorado, Idaho, Iowa, Nebraska and North Dakota, and will file for permission in the nine other states in its territory during the summer and fall.
Nacchio's resignation comes two months after WorldCom chief executive and co-founder Bernie Ebbers resigned as WoldCom's financial problems mounted. In recent years, both executives built telecommunications companies to compete against long-established giants such AT&T and US West.
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