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Qwest's CEO Gets 2006 Compensation Valued At $22.7 Million

Notebaert Took Over After Nacchio Resigned

POSTED: 6:40 am MDT March 30, 2007
UPDATED: 7:08 am MDT March 30, 2007

Qwest Communications chief executive Richard Notebaert received a 2006 compensation package valued by the company at $22,705,903 including salary and other payments, according to a regulatory filing on Thursday.

Richard Notebaert's package came as Qwest Communications International Inc. last year began to post its first quarterly profits in nearly six years without gains from asset sales.

In addition to a $1.1 million salary, Notebaert received $4.14 million in non-equity incentive plan compensation and options that had an estimated value of about $16.7 million on the days they were granted, according to the Securities and Exchange Commission filing.

Notebaert earned $757,913 in perks that included such items as personal use of a corporate jet, financial and tax consulting services, a business club membership and personal ground transportation, the SEC filing said.

The Associated Press calculations of total pay include executives' salary, bonus, incentives, perks, above-market returns on deferred compensation and the estimated value of stock options and awards granted during the year. The calculations don't include changes in the present value of pension benefits and sometimes differ from the totals released by the companies.

Qwest stock closed up 10 cents at $8.95 a share Thursday on the New York Stock Exchange, with news that the company had won a big government contract.

Notebaert took over at Qwest in 2002 after then-CEO Joe Nacchio resigned under pressure. Nacchio is on trial in Denver on 42 counts of illegally selling $101 million worth of stock in early 2001. He has pleaded not guilty.

The former president of Qwest will continue to testify Monday in Nacchio's trial.

Afshin Mohebbi, former president, on Thursday, began telling jurors about the beginnings of Qwest's plans to acquire U.S. West Inc. before the trial recessed for the weekend.

The former head of a Qwest division that handled consumer and small business products testified Thursday that he believed 2001 financial targets for his unit were "unattainable," yet Nacchio was angry when the company missed the goals.

Qwest Communications is the primary telephone service provider in 14 mostly Western states.

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