IDT Corporation (IDT), a multinational holding company, announced several changes in the management and executive compensation plan for its subsidiary, IDT Telecom. The plan is intended to provide incentives to the management of IDT Telecom for value creation.
The new telecom management team will be led by Mr. Motti Lichtenstein as the Chief Executive Officer of IDT Telecom. Other members of the team include Mr. Mikhail Leibov, who will serve as the president, Mr. Marcelo Fischer as the chief financial officer, Mr. Ely Tendler as the general counsel, and Mr. Yona Katz as the chief operating officer. Mr. Steve Brown will be the chief operating officer of IDT Corporation.
IDT’s board of directors has also approved an incentive compensation program for IDT Telecom’s executive team and other key employees. The program includes sharing of positive cash flows generated by the businesses and growth and monetization of assets among the management. The incentive plan is accompanied by significant cuts in management compensation and other reductions in selling, general, and administrative expenses to help bring telecom’s operations back to profitability.
We are confident that we have identified the correct management team to turn Telecom around and create value for our shareholders, said Jim Courter, Chief Executive Officer at IDT. He added, We have talked extensively about the competitive and other troubles facing IDT Telecom, and the need for a comprehensive program to address those difficulties. The new team includes members who have built and monetized – for significant gain – successful operations in the telecommunications industry, including IDT Telecom during its heyday. With the new incentives, we are confident that this team can lead the turnaround effort and produce value for our shareholders. Subject to oversight by the IDT Corporation Board of Directors and management, we intend to give the new team every chance to succeed and a fair amount of autonomy in its management of Telecom and implementation of their strategic plans.
We have made changes at the management level of IDT Corporation and at our largest division in order to utilize the talent we have and focus it on growth, profitability and creation of shareholder value, said Howard Jonas, Chairman at IDT Corporation. The new IDT Telecom team, led by Motti and Mikhail, knows how to identify the root cause of problems, fix them, and focus on growth and producing predictable, profitable results. At IDT Corporation, we are lucky that Steve has agreed to take on the role of COO. Steve’s broad experience as CFO and as Co-Chairman and President of IDT Entertainment brings discipline as well as the first-hand knowledge of how to build and monetize businesses. We look forward to using his talents in our varied operations.
Mikhail and I are pleased with the confidence being placed in our team, and are excited about the challenges ahead, said Motti Lichtenstein, Chief Executive Officer at IDT Telecom. We are developing strategic plans to protect and regain our positions as market leaders in the telecommunications arena, increase the value of our franchise and further diversify our operations. Synthesizing Mikhail’s technological and managerial expertise with this team’s historical operational strengths will accelerate our return to strong profitability and create value for the entire IDT family.
I am pleased to have taken on a new role at this crucial time for IDT, said Steve Brown, chief operating officer at IDT Corporation. I will utilize my experience in running operations to help nurture our smaller businesses through growth, and our larger businesses through increased focus and discipline.
Motti served as the Chief Executive Officer of IDT Telecom during its period of growth. He had served as the chief operating officer of IDT Corporation. Prior to his new position, Mikhail headed up the growth of Corbina, IDT’s Russian telecom operation, from its inception through its acquisition by IDT and sale in 2007. Marcelo has previously served IDT Corporation as chief accounting officer and chief financial officer. Ely has been the General Counsel of IDT Telecom since 2004, and will transition out of his role as chief legal officer of IDT Corporation to focus on the Telecom division. Yona has been with IDT Telecom for eight years and took over as Chief Executive Officer of IDT Telecom after Motti’s move to the IDT Corporation executive team.
