CONTACT:
Andrew J. Kahn
[transmitted by Ronald Proschan]
DAVIS, COWELL & BOWE
100 Van Ness Avenue, 20th Floor
San Francisco, CA 94102
415-626-1880
800-622-0641
DISTRIBUTION: US 2
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FOR IMMEDIATE RELEASE
May 2, 1996
AT U.S. WEST AND QUESTAR, SHAREHOLDER CHALLENGE TO GOLDEN
PARACHUTES FOR EXECUTIVES WHO QUIT
Both U.S. West Inc. and Questar Corp. have policies which
allow senior executives to quit and receive the same severance
pay as if they had been fired.
These policies are being challenged by a shareholder
proposal coming up for a vote at these companies' annual
shareholders meetings.
The proponent is shareholder United Food & Commercial
Workers Local 99R, a Phoenix-based food industry union.
The policy at U.S. West (NYSE:USW,UMG) would pay at least 3
years' worth of compensation to officers who quit in the 3 years
after a change in control if quitting in response to any
reduction in the officer's benefits ("including Company-paid
and/or reimbursed club memberships") or in response to "any
diminution in the status or responsibilities of the Executive's
position."
The policy at Questar (NYSE:STR) does not require any change
in employment for severance to be paid to an officer quitting
within 3 years of a change in control, so long as the officer
stayed on 6 months after the changeover. An officer quitting in
the first year after a change in control would receive two years'
severance.
A "change in control" triggering both policies includes
purchase of a large block of stock by another corporation or
replacement of the existing board.
William McDonough, Local 99R President, said, "Name me one
rank-and-file worker in this country who has a benefit as
generous as these golden parachutes. Shareholders should not have
to reward executives for choosing to quit."
All press inquiries should be directed to Local
99R counsel, Andrew Kahn, at (415) 626-1880 or (800) 622-0641,
who will supply press members with Local 99R's proxy statements and
copies of company policies.
The U.S. West meeting is June 7 in Ames, Iowa. U.S. West
refused to include Local 99R's proposal in the Company's proxy
card: thus the only way currently for shareholders to vote for
the proposal is to attend the meeting or obtain a proxy statement
and card from Local 99R (2501 W. Dunlap Ave. Phoenix 85021 tel.
602-572-2149).
The Questar shareholders meeting is May 21 in Salt Lake
City. Questar's proxy card includes the proposal.
Local 99R is engaged in a labor dispute with Albertson's. A
U.S. West executive sits on the Albertson's board of directors,
and an Albertson's executive sits on Questar's board.
