MCI shakes up board of directors

Troubled telco bets big on experience with five new appointments

Written by Robert Jaques

MCI, formerly WorldCom, has reorganised its board with the appointment of five management recruits, increasing the total number of directors to nine.

The troubled telco confirmed that the appointments will take effect on the day MCI formally emerges from Chapter 11 protection.

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It added that the first order of business will be to elect a non-executive chairman among its independent directors.

The new members include: former Touche Ross chairman W. Grant Gregory; retired Bell Atlantic executive Judith Haberkorn; Patton Boggs partner Laurence Harris; former US Deputy Attorney General Eric Holder; and MatlinPatterson Global Advisers LLC chief executive David Matlin.

MCI's chief executive, Michael Capellas, who will retain his current job in the shake-up, explained that he supports the separation between chairman and chief executive as an element of good governance.

"The appointment of our newest board members is yet another positive step in the rebuilding of our company," he said.

"By attracting a broad range of talent on the board as well as the management team, we will continue to chart a new course for MCI of which our customers, employees and stakeholders can be proud."

MCI stressed that the directors satisfy the requirements of the company's newly iterated corporate governance standards announced this week by corporate monitor Richard Breeden.

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