By Angela Chen
Frontier Communications Corp. said Tuesday that Chief Executive
Maggie Wilderotter will transition to an executive chairman role
next month.
She will be succeeded as CEO by director Daniel J. McCarthy, who
is currently president and chief operating officer, on April 3. Mr.
McCarthy will receive an annual base salary of $925,000, and is
eligible for a target bonus of $1.2 million. He can receive annual
target equity grants of $4.25 million payable in stock and
performance shares.
As executive chairman, Mrs. Wilderotter will receive a base
salary of $1 million, and be eligible for a $2 million target
bonus. She isn't entitled to new equity grants until 2017.
"It has been a privilege to lead Frontier as CEO for more than
10 years, and I am very proud of our team's accomplishments," said
Ms. Wilderotter, who is 60 years old. She became CEO of Frontier in
2004 and has spent billions of dollars on acquisitions over the
past 10 years that have pushed the telecommunications company into
more-populated markets.
Her older sister, Denise Morrison, is the current CEO of
Campbell Soup Co.
Mr. McCarthy, 47, joined Frontier in 1990 and has been president
and COO since 2012. He led the team negotiating the terms of the
$10.54 billion agreement to buy Verizon's operations in California,
Florida and Texas. If approved by regulators, the acquisition would
cap a stretch of fast growth that has transformed Frontier from a
minor regional telecom into a company providing phone and Internet
service throughout more than half the country.
The company tripled in size following a deal in 2010, and will
double it again following the close of the Verizon deal, which is
expected in 2016.
Shares of Connecticut-based Frontier have increased 20% this
year through Monday's close.
Write to Angela Chen at angela.chen@dowjones.com
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