Cincinnati Bell (NYSE: CBB) is facing an investigation from Robbins Umeda, a shareholder rights litigation firm, that it gave three key executives hefty raises at a time when the service provider reported weak financial performance.
The investigation is looking at the Cincinnati Bell board's decision to increase the compensation given to CEO John Cassidy--a 71 percent raise in 2010--despite reporting a loss of $61.8 million in net income and an 18.8 percent negative annual return for investors.
At the same, time Cincinnati Bell CFO Gary K. Wojtaszek and General Counsel for the company Christopher J. Wilson received raises of 80.3 percent and 54.3 percent respectively.
Robbins Umeda is also looking into whether the ILEC's board decision to approve the raises for these executives violated its own pay-for-performance policies at the expense of Cincinnati Bell's shareholders. In May, 66 percent of Cincinnati Bell's shareholders rejected the ILEC's 2010 CEO and other top management compensation levels.
Cincinnati Bell did not respond to a request to answer questions about the investigation.
- see the release
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