On what could be Qwest’s last filing..

March 25, 2011

Yesterday, one of the last barriers to the deal between Qwest (Q) and CenturyLink (CTL) disappeared when the Public Utility Commission of Oregon gave their blessing, paving the way for the deal to finally close. And it looks like it will on April 1. Which means that our long history here at footnoted — a whopping 26 posts — of dissecting Qwest’s SEC filings is about to come to an end next week.

Lucky for us, Qwest filed this amended K yesterday that included all of the juicy proxy-related information that we anxiously wait for each year. Here’s a few highlights for my fellow Qwest junkies:

  • Chairman and CEO Edward Mueller — who “won” our highly prestigious worst footnote of the year in 2007 for questionable corporate jet usage, spent nearly $300K on his personal use of the corporate jet last year — a 20% increase over 2009.
  • Chief Operating Officer Teresa A. Taylor got $4.95 million in severance early — before the deal closed. For some reason, Taylor is the only executive who received this. She also got a $1.1 million gross-up to cover the tax bill on those early severance benefits.
  • Qwest spent about $442K by playing real estate broker — a role it should be familiar with from doing essentially the same thing for Mueller several years ago. It purchased CFO Joseph Euteneuer’s home in Washington D.C. for $2.75 million, but was only able to sell the house for $2.3 million.

The proxy also talks a bit about the accelerated vesting that took place back on Dec. 21, which we wrote about here. We were cynical about the program then, because it seemed like a heaping dose of self-serving. But it looks like that cynicism has paid off. Maybe it’s just a happy coincidence, but on Dec. 21, Qwest stock closed at $7.71 a share. Compare that to what the stock is closing at now: $6.78, which means extra money for Qwest executives.

Oh, Qwest, how are we ever going to quit you?

Image source: Zalubowski/AP

With a .300 batting average on predicting deals, yesterday, we upped the ante and issued three more deal picks that are only available to footnotedPro subscribers. For more information on a subscription to footnotedPro, contact us at pro@footnoted.com. FootnotedPro: Interesting, Actionable. Profitable.


 

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