The search for Qwest’s new chief executive started with dozens of names provided by head-hunting firm Spencer Stuart.
Qwest’s selection committee of five board members initially narrowed the field to about 25 candidates, then winnowed it to the seven or eight they believed were the most qualified.
“The majority of the people we looked at had AT&T/Baby Bell experience,” said Qwest lead board member Frank Popoff. “We felt a background in telephony was an important variable.”
Joining Popoff on the selection committee were Jim Unruh, Linda Alvarado, Pat Martin and Caz Matthews.
They interviewed the final field of seven or eight candidates once, Popoff said.
“We had three or four candidates that we would’ve been pleased to bring to our shareholders,” he said.
But Ed Mueller, who retiring Qwest CEO Dick Notebaert said was his top recommendation to the board, stood out with his experience and knowledge of the industry.
“He has a great combination of operating capabilities that are kind of the hallmark of Dick Notebaert’s tenure,” Popoff said.
After conducting follow-up interviews with him, the committee last week reached an agreement with Mueller on compensation and presented the choice to the entire board over dinner Thursday at Restaurant Kevin Taylor at the Hotel Teatro, Popoff said.
The board voted unanimously Friday morning to elect Mueller as its chairman and CEO. Mueller met with Qwest’s senior management team later that day.
JP Morgan analyst Jonathan Chaplin lauded the selection, noting that Mueller’s telecom and retail experience should help the company. After working for 34 years in telecom, Mueller served as CEO of cookware company Williams-Sonoma from 2003 to 2006.
“We believe this will help enable him to carry on Notebaert’s customer-driven approach to managing the business,” Chaplin wrote in a research note. “Mueller knows the industry, he knows the key constituents and he should be able to hit the ground running.”
Mueller faces a number of challenges, most notably the changing telecom environment that includes intense competition from cable firms such as Comcast. Though the industry is consolidating, Mueller and Popoff said no deals are imminent.
“We’re not searching for acquisitions or joint ventures or M&A (mergers and acquisitions) activity,” Popoff said. “But it’s an industry that continues to consolidate, and we want someone who can help us evaluate the options that are available to us.”
But he added that Mueller’s “first job is to run the company.”
Staff writer Andy Vuong can be reached at 303-954-1209 or avuong@denverpost.com.
