Mar 11, 2002 : Global Crossing's CEO Cuts The Fat
📅 - Global Crossing's CEO John Legere, announced today that he intends to resist liquidation by creditors by strengthening the company's budget.
Legere, who has been CEO of the bankrupt company since October, has eliminated corporate airplanes and posh office space, including the Beverly Hills company headquarters.
Guiding the company (globalcrossing.com) through a reorganization following its Chapter 11 bankruptcy filing in January, 43-year-old Legere is mounting a public relations campaign to counter unfavorable publicity about spendthrift executives.
Legere defended his $3.5 million signing bonus, but said he would reduce the $1.1 million salary he received when he moved up from affiliate Asia Global Crossing by 30 percent. The company also forgave $10 million of a $15 million loan he received as president and CEO of Asia Global Crossing, which he joined after leaving Dell Computer as a top executive.
?I live in the opulent luxury of a Summerfield Suites hotel which has the daily company rate of $109,? Legere said in an interview with The Associated Press. ?This is not the lap of luxury here.?
Global Crossing's fortunes sank along with demand for bandwidth. Investors, who once paid more than $60 a share for company stock, began to view the company as over-indebted and drove the price down to under $1 a share.
Legere said he resorted to the bankruptcy filing as a "last-ditch" measure to save thousands of jobs and the company's future, even though it clobbered shareholder investments and employee retirement plans. But he maintains faith in his strategy because several companies have expressed interest in bidding for Global Crossing and its 100,000-mile fiber optic network that links 27 countries.
Legere, who has been CEO of the bankrupt company since October, has eliminated corporate airplanes and posh office space, including the Beverly Hills company headquarters.
Guiding the company (globalcrossing.com) through a reorganization following its Chapter 11 bankruptcy filing in January, 43-year-old Legere is mounting a public relations campaign to counter unfavorable publicity about spendthrift executives.
Legere defended his $3.5 million signing bonus, but said he would reduce the $1.1 million salary he received when he moved up from affiliate Asia Global Crossing by 30 percent. The company also forgave $10 million of a $15 million loan he received as president and CEO of Asia Global Crossing, which he joined after leaving Dell Computer as a top executive.
?I live in the opulent luxury of a Summerfield Suites hotel which has the daily company rate of $109,? Legere said in an interview with The Associated Press. ?This is not the lap of luxury here.?
Global Crossing's fortunes sank along with demand for bandwidth. Investors, who once paid more than $60 a share for company stock, began to view the company as over-indebted and drove the price down to under $1 a share.
Legere said he resorted to the bankruptcy filing as a "last-ditch" measure to save thousands of jobs and the company's future, even though it clobbered shareholder investments and employee retirement plans. But he maintains faith in his strategy because several companies have expressed interest in bidding for Global Crossing and its 100,000-mile fiber optic network that links 27 countries.
Reads: 1538 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/gc031102.cfm
Want to add a website news or press release ? Just do it, it's free! Use add web hosting news!