AT&T CEO Whitacre to retire

AT&T Chief Executive Edward Whitacre, whose contract was set to expire next year, unexpectedly announced today that he will retire in less than two months.

Randall Stephenson, COO at AT&T, will be the company's new CEO. (See related story.)

Whitacre announced his retirement at a shareholder meeting in Austin today.

“There would never be an easy time for me to leave this job,” Whitacre said at the meeting. “This job has meant very much to me, it has meant so much to me, but now is the right time for me to step aside.”

“I have told the board that on June the third of this year, which incidentally is my 44th service anniversary, I will retire as chairman, chief executive officer and director.”

Whitacre announced his retirement at a shareholder meeting in Austin today. He will depart on June 3.

According to a separate report in the Wall Street Journal. Whitacre is looking at a sweet retirement package valued at $158.5 million.

Here are some of the perks: $73.8 million in nonqualified deferred compensation; $61 million in supplemental retirement income plans; $22.3 million in supplemental executive-retirement plan; and $1.4 million from the carrier’s benefit pension plan.

Additional benefits beyond the $158.5 million include: $24,000 in automobile benefits annually; $6,500 for home security annually; use of AT&T’s private jet for 10 hours per month; free health insurance for Whitacre and his family; taxes on most of the benefits; $1 million a year for three years for consultant to AT&T post-retirement; and $25,000 for those three years for country club fees.

The plan isn’t drawing much criticism, according to the report, because Whitacre has consistently grown the business through multiple successful acquisitions. And with $120 billion in revenue, more than 100 million customers and a 53% return to shareholders in 2006, Whitacre has given shareholders little to complain about.