Capellas faces cuts to £24m WorldCom pay package

WorldCom Special

Richard Breeden, appointed by the bankruptcy court to keep a tap on the bankrupt telecommunications group, yesterday told the court judge Capellas’ package was ‘grossly excessive’.

Capellas joined WorldCom last month, leaving computer company Hewlett-Packard where the dust of its recent merger had barely settled.

Should WorldCom emerge from bankruptcy, Capellas stand to receive £11.5m in shares, £5m in share options and a £7.6 non-guaranteed award. In subsequent years he would receive a performance-based stock award of twice his £1m annual salary plus his target bonus.

Following resistance from Breeden, WorldCom is revising Capellas’ pay package agreements.

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