MCI chief executive Michael Capellas received $1.5 million in salary and a $5 million bonus in 2004, according to MCI’s proxy filed Wednesday.
The filing set the annual shareholder meeting for May 16 near MCI’s headquarters in Ashburn, Va. The meeting may become a showdown for shareholders upset over the pending merger with Verizon.
Denver-based Qwest is trying to win MCI away from Verizon and may lobby MCI shareholders to vote against re- electing MCI’s board at the meeting.
The election of MCI’s board is guaranteed because there is no opposing slate of directors. But an overwhelming “no’ vote would apply pressure on MCI’s board to reconsider its plan to merge with Verizon.
Capellas’ $5 million bonus was for “outstanding achievements,’ including restating 2002 financials after the $11 billion WorldCom accounting scandal and for meeting MCI’s stated financial goals for 2004.
As of February, Capellas has accumulated 1.1 million MCI shares worth nearly $30 million. The stock, which traded as low as $12.50 last summer, closed Wednesday at $26.27.
A half-dozen big shareholders have expressed public outrage that Verizon paid a premium to buy out the largest shareholder, Mexican billionaire Carlos Slim.
They want MCI’s board to reconsider Qwest’s $27.50- per-share offer or get more money from Verizon, which is offering $23.10 per share. Slim got paid $25.72 in cash, upfront, with benefits if Verizon’s stock rises in the future.
Staff writer Ross Wehner can be reached at 303-820-1503 or rwehner@denverpost.com
