According to a report from Behind the Buyouts, five insider board members at Alltel, including CEO Scott Ford and shareholder Warren Stephens of Alltel advisory firm Stephens Inc. stand to make a large profit as a result of TPG and GS Capital partners buying the carrier for $26.3 billion. CEO Ford will receive $11.4 million and the top five officers will receive payments totaling $31 million. Ford also stands to make $89 million should he leave the company. The top five officers--CEO Ford, Presidents Beebe and Fox, CFO Gasaway and General Counsel and Secretary Massey--will receive a total of nearly $250 million should they leave the company after a "change of control" occurs.
Some shareholders proclaim that these figures indicate the directors did not have the best interests of Alltel in mind when they decided to agree to the deal. Lon Engel, a shareholder who filed suit in May, said the deal was "grossly unfair [to shareholders] and far below the maximum value."
For more on Alltel's deal:
- see this article from Alltel Revealed