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FairPoint execs get bonuses, revenue dips
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The two top executives at troubled FairPoint Communications customers received performance-based bonuses recently at roughly the same time that the company was being lambasted over its poorly-executed system cutover in New England. Fair Point's poor response to cutover problems related to the operational transition of former Verizon landline properties drew the ire of customers and regulators alike, but two company execs were still given more than $100,000 in bonuses.
FairPoint Chairman and CEO Gene Johnson received an $83,862 bonus and a 30 percent raise in 2008, according to an SEC filing, while FairPoint President Peter Nixon accepted a $50,000 bonus. Other executives also were reported to have received raises.
The bonuses appeared to be directly connected to the acquisition itself, and Johnson reportedly made less in compensation for 2008 than he did in 2007. However, this still won't sit well with FairPoint customers who were affected by the cutover problems, or New England regulators and consumer groups who were worried about the FairPoint acquisition from Day One.
Meanwhile, FairPoint reported first-quarter earnings that included a sequential slide in revenue to about $311.6 million, from more than $319 million during the previous quarter. The company's total number of access lines in the first quarter of 2009 was about 8.8 percent lower than in the first quarter of 2008, though this figure is in line or only slightly above average line loss among independent telcos.
For more:
- The Concord Monitor has this report
- Here's the FairPoint press release
Related articles
The blame for FairPoint's transition problems is spreading
FairPoint had hoped for normal operations by next month
Comments
Posted by Anonymous | May 11, 2009 - 10:09am
Remember Gene think of what your Grandmother would do, I thought you lived by this quote. It seems thats another lie, your grandmother would have found a way to keep all employees working, not lay off 56 employees as you did in Jan 09, of course only from the Classic side. You should think before speaking, as people never forget. Maybe if the exec's took less of a bonus, these jobs could have been saved.
Posted by Anonymous | May 7, 2009 - 4:52pm
What about the "Classic Telecom Group", Gene said himself that "he would never forget who brought him to the dance". Well we got him to the dance and we did not receive the pay hikes that the new Verizon Property Employees received. We also did not receive any raises this year and Gene gets a 30% raise!
Signed,
Devoted workers in the "Telecom Group"
Posted by Anonymous | May 7, 2009 - 9:02am
Whats the most ridiculous about this is the letter that the employees at Fairpoint received from GENE JOHNSON HIMSELF, less then two months ago, stating that they were going to need to take some concessions and not receive pay increases this year. How does he justify this? Its sickening.
Posted by Love those execs! | May 6, 2009 - 8:40pm
Once again, executives are getting everything they get promised even though they aren't doing anything to help the company. Are these people living in a bubble? And I keep hearing people saying all the workers in all kinds of businesses need to make concessions, because everyone else has to. Wrong, the concessions need to be made at the top. The rational is that they need to pay these enormous bonuses to make sure they get the most qualified people to do the job. Well, they're not getting the most qualified people. These guys are screwing up everything. The only thing they're qualifed to do is destroy these businesses. Retires all over the county are losing medical and pensions, and these exec's are paid enough that they could live the rest of their lives without needing medical and pensions. Of couse they might need to sell that vacation home, and maybe downsize the home they live in to only a half million dollar home. I'm sick of seeing the comments about how the little guys doing all the work should have their medical and pay decreased. We need more comments on how they deserve what they earn, and even more, and that the executives are the ones who are causing these companies to go in the toilet. I just hate those greedy, self-centered, ignorant idiots.
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