Qwest Communications Inc. Chief Executive Richard Notebaert, moving to squelch rumors that he was bolting to become Motorola Inc.’s CEO, told employees that he has no intention of leaving the Denver-based company.
“I am committed to this company,” he said in an e-mail. “And I am not leaving.”
Notebaert said he hated to “dignify misinformation” with a reaction but that employees had been asking him about the matter. Some employees even had taken him to task for abandoning Qwest, his e-mail said.
“I hope this is clear enough and we can stop this thing here and now,” his Monday e-mail said.
Rumors began swirling in Denver that Notebaert was poised to leave the company after the Tribune reported Oct. 8 that he had been contacted in conjunction with Motorola’s search for a CEO to replace Christopher Galvin.
The Tribune reported that Notebaert, a 55-year-old telecom veteran, was one of several candidates who had been contacted. The report was based on sources close to SpencerStuart, which is advising Motorola on the search.
One source familiar with the search said Notebaert was a “favorite” on a list of eight candidates.
His ties to the Chicago area are well-known: He led Ameritech Corp. until its sale to SBC Communications Inc. in 1999 before jumping to equipment-maker Tellabs Inc. as CEO.
Notebaert was recruited to Qwest in June 2002, replacing Joseph Nacchio. His contract guarantees him an annual salary of $1.1 million.
Beyond that, however, he has some powerful incentives to remain at Qwest. His cash compensation last year was $1.69 million, including a bonus and his pro-rated salary.
He also received options to purchase 5 million shares at $5.10 each, vesting over four years, with an estimated value of $16 million.
And he is guaranteed a grant of at least 250,000 options each year, also vesting over four years.
In addition, Notebaert received 200,000 shares of restricted stock last year that vest over three years. On Tuesday, Qwest’s stock closed at $3.48, down 8 cents.
Should he remain at Qwest until age 65, Notebaert is entitled to an estimated $14.3 million lump-sum payment upon retirement, much of it based on benefits he had due to him from previous employer SBC.
He also is entitled to various perks under his employment agreement, including free personal use of company aircraft for himself and his wife, membership in three business clubs, home security fees, plus free financial planning, office space and an executive assistant for life.
Notebaert’s e-mail to employees, informal and chatty, talked about the company’s progress and its bright future.
“It’s going to be quite a ride,” he said. “And I, for one, wouldn’t miss it.”
