Qwest Chief Executive to Retire
Richard C. Notebaert, who is credited with bringing Qwest Communications back from the brink of bankruptcy and an accounting scandal, surprised investors today by announcing he plans to resign as chief executive and chairman.
Mr. Notebaert, who took the helm of Qwest in 2002 when it faced difficult legal and competitive challenges, said he is leaving in order to spend more time with his family and to focus on other interests. He will stay until a replacement is named, the company said.
The announcement surprised industry analysts who have given Mr. Notebaert credit from steering Qwest, the smallest of the regional telephone companies, back to stability.
Mr. Notebaert’s resignation, however, follows closely the resignations of two other top Qwest executives: Oren G. Shaffer, chief financial officer, who left April 1, and Barry Allen, chief operations officer, who announced his retirement earlier this month.
The departure of the key executives “suggests turmoil is coming,†said Donna Jaegers, an industry analyst with Janco Partners who has a sell rating on the stock. Qwest’s shares closed the day at $9.36, down nearly 8 percent. In the last few years, the shares have risen steadily, from less than $4 three years ago.
Mr. Notebaert and his team deserve credit for cutting the companies costs and bringing it order, Ms. Jaegers said, but the company still faces major strategic challenges. In particular, she said, Denver-based Qwest must find a way to compete more effectively in the long-distance phone and data market outside of its core 14-state market.
for the complete article go to NYTimes.com
Corra conducts its fair share of background checks for upper level executives. These are the people that will be responsible for the health and leadership of your business. Good executives can expand your bottom line. Poor executives can put you out of business. And some executives can make the kind of scandalous headlines you don’t really need.
Unlike the preemployment screenings you would conduct for lower level or mid-management candidates, the key executive searches are a bit more complex. Researching the background of an executive requires the usual searches plus additional considerations.
If your candidate will be handling finances or is part of your accounting team, then it is wise to run both the federal criminal and federal civil background searches. These searches will help detect your candidate’s infractions with concern especially to white collar crimes. Some executives escape the criminal charges, but they are found guilty in civil court, so it really pays to do both searches. Credit checks are very important as well.
As noted, these are the people who will be running your business. Check them out before you hire.
