2005 Post 200
MCI Inc.
22001 Loudoun County Pkwy.
Ashburn, Va. 20147
www.mci.com
Industry: Telecommunications
Post 200 Category: Top 125 Companies
Revenue: $20.69 Billion
Net Income/Loss: ($4,002,000,000.00)
Earnings per share: ($12.48)
Dividend: $0.80
Stockholder equity: $4.23 Billion
Auditor: KPMG LLP
Stock: MCIP
Assets: $17.06 Billion
Market capitalization: $8.53 Billion
52-week high: 26.44 4/13/2005
52-week low: 12.5 5/10/2004
President and CEO: Michael D. Capellas
CFO: Robert T. Blakely
Employees: 41193
Local employees: 4227
Description: MCI is the nation's second-largest long-distance phone company and a leading provider of wholesale Internet access.
Developments: The company has been through a wringer of scandal, bankruptcy protection and attempted turnaround and is probably headed for extinction. Throughout the spring, it was the center of a bidding contest between Verizon Communications Inc.and Qwest Communications International Ltd. Review of an MCI deal with either company could take a year, but if it goes through, it will mark the end of a once-proud local company that was synonymous with long-distance telephone service and gave its name to downtown Washington's arena. After shedding the WorldCom name that had been tainted by a massive accounting scandal, MCI relocated to Ashburn. But its cost-cutting continued, and the company ended 2004 with about 1,000 fewer Washington area employees than the previous year. With the likelihood of the company being acquired, remaining employees face even more uncertainty.Verizon and Qwest both have said they would become more efficient by cutting jobs as a result of a takeover, but neither company has specified how many MCI workers might be affected. The buyout comes after another difficult year for MCI. The company had revenue of $20.7 billion last year, a 15 percent drop from 2003, and it lost $4 billion. The company showed a huge profit in 2003, but those numbers were skewed by its trip through bankruptcy court. Chief executive Michael D. Capellas said the company expects revenue to fall by an additional 10 to 15 percent this year, with the continued contraction of the consumer long-distance business. MCI stopped marketing consumer long distance due to regulatory changes.
Executive Compensation
President and CEO: Michael D. Capellas
Total Cash: $6,557,700.00
Total Compensation: $25,182,500.00
CFO: Robert T. Blakely
Total Cash: $1,598,200.00
Total Compensation: $5,213,600.00
President, U.S. Sales and Services: Wayne E. Huyard
Total Cash: $1,471,900.00
Total Compensation: $4,883,100.00
General Counsel: Anastasia D. Kelly
Total Cash: $1,514,400.00
Total Compensation: $3,486,000.00
Executive Vice President: Jonathan C. Crane
Total Cash: $1,166,300.00
Total Compensation: $2,812,100.00