Frontier CEO 'Sister' Wilderotter Steps Aside -- Update

By Angela Chen 

Frontier Communications Corp. said Tuesday that Chief Executive Maggie Wilderotter will transition to an executive chairman role next month.

She will be succeeded as CEO by director Daniel J. McCarthy, who is currently president and chief operating officer, on April 3. Mr. McCarthy will receive an annual base salary of $925,000, and is eligible for a target bonus of $1.2 million. He can receive annual target equity grants of $4.25 million payable in stock and performance shares.

As executive chairman, Mrs. Wilderotter will receive a base salary of $1 million, and be eligible for a $2 million target bonus. She isn't entitled to new equity grants until 2017.

"It has been a privilege to lead Frontier as CEO for more than 10 years, and I am very proud of our team's accomplishments," said Ms. Wilderotter, who is 60 years old. She became CEO of Frontier in 2004 and has spent billions of dollars on acquisitions over the past 10 years that have pushed the telecommunications company into more-populated markets.

Her older sister, Denise Morrison, is the current CEO of Campbell Soup Co.

Mr. McCarthy, 47, joined Frontier in 1990 and has been president and COO since 2012. He led the team negotiating the terms of the $10.54 billion agreement to buy Verizon's operations in California, Florida and Texas. If approved by regulators, the acquisition would cap a stretch of fast growth that has transformed Frontier from a minor regional telecom into a company providing phone and Internet service throughout more than half the country.

The company tripled in size following a deal in 2010, and will double it again following the close of the Verizon deal, which is expected in 2016.

Shares of Connecticut-based Frontier have increased 20% this year through Monday's close.

Write to Angela Chen at [e-mail]

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