The people lamenting the departure of the Frontier executives have it backwards. Here’s what actually happened:
1- Frontier was loosing money and marketshare
2- Activist hedge funds took a stake in the ailing company and shepherded it through a bankruptcy which reduced its debt
3- They recruited John Stratton, Nick Jeffery and other executives to lead the company after emerging from bankruptcy. Those executives received significant awards of stock and RSUs. The RSUs would vest immediately upon sale of the company
4- Frontier’s situation improved under their leadership although it’s still losing money
5- The hedge funds and the executives got a big payday by selling the company for $20 billion in cash to Verizon. Stratton made about $100 million, Jeffery about $90 million and the hedge funds made billions in profits. The Frontier executives had to resign in order to maximize their payday. They would have been fools to stay.
8 replies (most recent on top)
@f8 nearly 10m fiber homes passed, not 9000
Tbe Frontier Execs pulled off the PE dream. Buy distressed assets.. dress up and sell to a desperate buyer.
Frontier upgrades a pietion of Copper to Fiber... even at that sole focused struggled to get to 9,000 passings. Then even at that got to only 30% broadband Customers on Fiber ( majority were already on Copper). So net revenue over stated on growth.
Now the dream is upsell mobile.
Considering how poorly Vz integrated GTE, MCI into operations one can onky assume DEI employees will be so confused doing power points.
As a result tve Frontier Execs getting out with over payment of compensation if Verizon employees but perfectly compensated how PE made billions on weak Vz BOD and DEI Hans & Team
some one in the thread posted the SEC filings and yes, Stratton left with about $78 million, not including what they were paying him already.
Nice gig, funny because, when he left, many were devastated with the assumption of the Crown by the Meatball. Having dealt with Stratton myself on many occasions, I seriously doubt Verizon would end up as a puddle with no direction.
Nick was amazing ceo for frontier. Actively participating in everyday life and holding weekly meetings with staff to keep us informed.
@a8 Jeffery turned around Vodafone UK then Frontier as CEO. Remaining in any position other than CEO would be a big step down for him and that’s in addition to foregoing millions in compensation. It would be a different situation if meatball and the board had agreed to give him a C-level position and financial incentives after the acquisition closed.
Anyone who’s worked at Verizon for any length of time knows that they don’t choose the best person for the job. Jeffery may have been great at his job but that would not have guaranteed him a position at the top.
@a8 Nick Jeffery HAD to resign in order to get the $7.8 million severance and for his 778,919 RSUs to vest immediately (almost $30 million worth)
Verizon can still hire him as CEO or COO if they want to.
This was a very successful exit for the hedge funds who invested in Frontier and for the executives that helped turn the company around. I would be very surprised if there are any ill feelings between the two sides. They were hoping to sell the company at a huge profit and Verizon made their dreams come true.
It was only losing money because it was building so much fiber. Stop the build and Frontier would be massively cash positive. VZ will clearly know this...
@OP May be true but such a shame Nick Jeffery had to leave. He would have made an AMAZING addition to the VZ team, even a great next CEO. The company has been foolish in letting him go. Our Board AGAIN showing they have zero clue about talent.