AT&T sets bold new business strategy
Article Abstract:
AT&T is preparing a marketing and investment plan with unprecedented provisions, in an effort to duel with its Bell competitors. Details include franchising the AT&T brand name for the first time, plus marketing wireless and local-phone services to franchised affiliates. Vice Chmn and COO John D. Zeglis and senior management prepared the plan. AT&T would reduce 1998 capital spending to as low as $7 billion, compared to projections of $9 billion to $10 billion. Zeglis, a candidate to succeed AT&T Chmn Robert E. Allen, is expected to outline his vision for a redefined AT&T. New pricing plans would target the top 20% of communications services users who purchase products ranging from cell phones to Internet services. AT&T attributes 80% of its $6 billion annual profit to this high-end segment. The pricing strategy would depend on calling volume, rather than distance or placement. AT&T, the largest US telecom company with 90 million customers, will face intense competition in wireless and local phone services by 1998.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1997
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AT&T handsomely rewarded top brass; CEO Armstrong picked up $1.4 million in salary after year of turmoil
Article Abstract:
AT&T provided new CEO C. Michael Armstrong and other top executives with handsome cash and stock-option grants following a tumultuous 1997, according to the telecommunications company's latest proxy statement filed with the SEC. Armstrong drew $14.9 million in restricted stock and restricted stock units to recoup his forfeited compensation at his former employer, Hughes Electronics. AT&T also guaranteed Armstrong, who joined the company in Oct 1997, $1.4 million in annual salary. Other rewards for Armstrong include an annual bonus that is at least equal to to his annual 1998 salary, as well as performance stock units that are also equivalent to his salaries in 1998 and 1999. Former Pres John R. Walter received a $26 million package, on top of his $1 million regular compensation for having worked seven months. John D. Zeglis, the current AT&T pres, received a 49% bonus in his 1997 salary and bonus to $1.61 million.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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