Monday, August 13, 2007

Qwest Taps Mueller To Succeed Notebaert As CEO

Edward A. Mueller, a former chief executive of Ameritech Corp. and Williams-Sonoma Inc., has been named chief executive and chairman of Qwest Communications International Inc., the company said. Mr. Mueller, 60 years old, takes the lead at Qwest after a tumultuous few years as the once highflying telecommunications company struggled to get back on a solid financial footing in the wake of shareholder lawsuits and investigations as a result of accounting problems in the early part of the decade. Mr. Mueller will be faced with fierce competition from cable companies that are increasingly encroaching on the company's home turf of Denver and other key markets such as Seattle and Portland, Ore., with competitively priced phone, Internet and video services. Mr. Mueller, whose appointment was effective Friday, succeeds CEO and Chairman Dick Notebaert, 59, who announced his plans for retirement in June. Mr. Mueller didn't speculate on changes he had in mind at the company but said, "Any time new fresh eyes come on the scene you can evaluate everything." In particular, Mr. Mueller said he wanted to maximize Qwest's slogan, "Spirit of Service," to ensure customers' expectations are met. "I don't think technology gives anyone an edge," Mr. Mueller said. "Everyone else catches up pretty fast. It's what you do with that technology." Mr. Mueller (pronounced Miller) served as president and CEO of Ameritech, a land-line carrier that is now part of AT&T Inc., from 2000 to 2002. He joined SBC Communications Inc., which later renamed itself AT&T, in 1968 and held several executive-level positions in the company, including president and CEO of Southwestern Bell Telephone, president and CEO of Pacific Bell and president of international operations. He was CEO of retailer Williams-Sonoma from 2003 to July 2006. Mr. Mueller holds a bachelor's degree in civil engineering from the University of Missouri and an executive M.B.A. degree from Washington University. Frank Popoff, lead director on Qwest's board, praised Mr. Mueller's telecom background and said his Williams-Sonoma experience made him a well-rounded candidate. Mr. Notebaert had recommended Mr. Mueller to the board. "Ed walks into a very competitive marketplace with changing technologies and that's where his retail experience really will serve our company and shareholders well," Mr. Notebaert said. During his tenure, Mr. Notebaert cut thousands of jobs, pared back benefits and reduced the company's debt by more than 40%. He had taken over after Joseph Nacchio resigned in mid-2002 as the company's stock plummeted after investors learned of what many of them believed to be improper accounting methods at the company. Mr. Nacchio was recently sentenced to six years in prison for insider trading. Recruiters Spencer Stuart handled the CEO search for Qwest. ---

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