AUSWR
The Association of U S West Retirees
 

 

 

AT&T 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 agreement.

Dorman will forfeit $7 million in performance-based stock.

http://www.rockymountainnews.com/drmn/tech/article/0,2777,DRMN_23910_4229932,00.html