Last year, Fairpoint Communications decided to bump their CEO’s salary to roughly $800,000 per year. Of course, that doesn’t include other compensation that (based on his past ‘other compensation’) usually bumps up his yearly income to around $5M per year.
Now, FairPoint Communications is fighting with their employees in northern New England. Fairpoint is looking to cut benefits across the board for employees (while likely leaving in place higher leadership pay/benefits even though the company is atrocious in just about every customer satisfaction survey).
Specifically, FairPoint is asking employees to severely cut their health care coverage, wages and pensions.
FairPoint CEO Paul Sunu said in a quarterly conference call this month:
“Our core proposals include freezing the defined-benefit pension plan, discontinuing post-retirement health care benefits for active employees, moving bargaining unit employees to the contributory benefit plans available to other employees, making changes to layoff and recall provisions and the elimination of the related costs and changes to various other work rules that will allow us to more effectively serve customers.” – BenningtonBanner.com
FairPoint Vermont President Beth Fastiggi said in an April interview that the company is looking for cost savings.
Really? Let’s get into this…..In 2007, Fairpoint spent almost $3B to acquire Verizon’s New England networks and promised to create 675 jobs. Soon after the deal closed, Fairpoint realized what a utterly terrible deal this was and decided to file for bankruptcy.
Meanwhile, Fairpoint continues to end up around the bottom of just about all customer service and satisfaction rankings.
No word yet on whether the CEO of this terrible company was going to cut his absurd pay to help minimum-wage working employees:
In 2012, Sunu earned $4.2 million in total compensation, including his baseline salary of $750,000. Other forms of compensation in 2012 included a $157,220 bonus, $1 million in stock options, $2.2 million awarded as stock and $103,783 from other types of compensation.