As of March 23, 2014, TW Telecom has roughly $1.3 billion in net debt. So, it must be a good time to be one of the executives at the company. Why?
Because once Level 3 completes its $5.7 billion acquisition of TW Telecom later this year, five members of their management team could get cash/stock payouts valued at around $88 million. Specifically, TW Telecom’s CEO Larissa Herda is set to receive nearly $42 million in cash/stock/benefits.
The Denver Post estimates that the service provider’s top four executives could receive the following packages:
- John Blount, president and COO, $21.2 million;
- Mark Peters, CFO, $16.2 million;
- Jill Stuart, chief accounting officer, $5.7 million; and
- Tina Davis, general counsel, $3.5 million.
The proposed merger is also facing scrutiny from Andrews & Springer LLC, which said it “is investigating whether tw directors are breaching their fiduciary duties by failing to adequately shop the company and maximize shareholder value.”
Who cares about the company/shareholder values when you can benefit directly?