SuperMedia CEO Scott Klein Resigns Amongst Allegations of Fraud


Scott Klein SuperMedia CEO Resigns Amongt Allegations of FraudSuperMedia CEO Scott Klein “resigns” amongst allegations of fraud.

Recently, Verizon was sued by the Idearc bankruptcy trustee.  Questionable actions have led to the resignation of SuperMedia’s CEO Scott Klein. This is not the first time an executive from the company has resigned or been fired for questionable actions and activities. If you are a SuperMedia employee, just think, it can’t get any worse and the end on Scott Klein’s reign of terror on VIS/Idearc/SuperMedia is over.

Who is now in charge?

SuperMedia appoints Peter J. McDonald as interim CEO replacing Scott Klein. Douglas Wheat is chairman of the board. Scott Klein has officially “resigned.”

Hopefully they find someone who has experience in something other than takeovers, buyouts and commodity product sales.

Scott Klein’s absence may lead SuperMedia on a path to becoming “America’s Best Small to Medium-Sized Business Advertising Agency”, yet to do this they must approach the market with a holistic, service oriented, transparent product offering and embrace a subscription opt-in distribution model. My suggestion is to reduce the scope of the directories and take a magazine approach with incentives for advertisers. Incentives, not copied gimmicks such as the SuperGuarantee will give consumers what they want. If the company can incorporate the power of group buying, special offers, and distance themselves from a 12 month product life cycle they will succeed. This has potential to be a great step in the right direction for the company. Let’s see if the micro-management culture continues?

 

So, what about this new interim CEO?

Mr. McDonald has over 35 years’ experience in the yellow pages industry, most recently as President and Chief Operating Officer of RH Donnelley Corporation (now known as Dex One Corporation) from October 2004 to September 2008. He has previously held other senior roles in the industry, including Senior Vice President and President of Donnelley Media, President and Chief Executive Officer of SBC Directory Operations (now AT&T Directory Operations), President and Chief Executive Officer of Ameritech Publishing, President and Chief Executive Officer of Dontech Publishing, and General Manager of Donnelley Information Publishing. Mr. McDonald began his career at National Telephone Directories – one of the predecessor companies that are now SuperMedia – where he became Vice President and General Manager. Mr. McDonald has served on a number of boards, including those of RH Donnelly Corporation, CMGI Inc., and the Yellow Pages Publishers Association, where he served as Vice Chairman.

It is obvious that he will soon be working on the planned merger between DexOne and SuperMedia. Cost savings and the fact that the companies business models are so closely aligned, combined with the fact that the companies do not cross compete in most markets means that it is inevitable.

*edit* rumor is as of Nov. 17th Mike Pawlowski and David Bethea, the East and West EVP’s under Klein, are out starting 11/ 30/2010. They are being replaced by Dex people which would indicate that Supermedia management is being eliminated(any surprise?) in preparation for a merger with Dex.

When a monopolies are a goodthing, two crappy companies make one really crappy company… the DexOne/SuperMedia merger is necessary to cut expenses and both companies do not cross compete.

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19 Responses to SuperMedia CEO Scott Klein Resigns Amongst Allegations of Fraud

  1. Mike Stewart says:

    Blog Stats:
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  2. Nice post, Mike! More light needs to be shed on the imminent shift in the directory publisher business model. Even it’s just a “subscription with a promise” it’d be a step in the right direction.

    • Mike Stewart says:

      Hey Steve,

      If SuperMedia wanted to make a change for the better, they would be calling Century Interactive for the best call metrics and advertising measurement service on the planet. BTW, any luck with Woopra Integration? Did y’all get access to the API? Just curious. I like the dashboard at Woopra.

      Although I didn’t attend the BIA/Kelsey Local meeting here in Dallas, what I have heard over the grapevine on the state of the business only reinforces the departure of Scott Klein. Good news for the folks at SuperMedia. Let’s just hope that the board of directors can uncover the deep damage he has created in the sales channel and the horrible decisions to outsource the service to Tata Consulting in India.

      The company needed to shrink, just not the way Mr Klein intended. That is what you get for hiring a commodities sales executive to lead a service oriented organization. Yellow Pages was a commodity, and based off of TMPDM’s latest findings, in urban markets it only represents 22% of local business references…. huge shift from the 60+% usage stats in 2005!

  3. Stacey says:

    I am a current employee of SuperMedia for the time being and walked into a SUPRISE email this morning from Employee Communications.I had to get on and search for a reason. HMMM, yeah, this makes total sense if you have been under this SuperMedia Umbrella.. Yes, Yes, I am one of the thousands that got laid off in Scott Klein’s Shrinkage plan..It makes me sick. Thousands of our co-workers/friends who have been dedicated to this company (many with 20 years or more of service and who are almost at their points for retirement) come in and are told they no longer have a position only to find out they have moved everything but “Immediate Graphics”, Customer Service (as Scott Klein told us in many meetings that he would not put foreign people on the phones)and some administrative positions to India (TaTa)..I have been with this company since it was GTE, in where it was a joy to come to work and where they showed they cared about their employees. Since it changed over to Verizon it has gone down hill, a steep, dark, tremoultuous one. The management here needs a total re-vamp. I mean, come on, a manager who cannot even type a simple email without tons of grammatical errors is just wrong. The micromanagement is unbearable here as this is what the management can lean on as that is all they know. I hope, for the rest of the employees still with the company, it gets better. SuperMedia has decent pay, great benefits and really wouldn’t be a bad place to work if they shook up management and let us, the employees, have a voice instead of treating us just like a number. But again, this is Corporate America. I hate using that excuse, it shouldn’t be like this..

    • Mike Stewart says:

      Corporations don’t have a conscience. Corporations do have a culture. The culture at SuperMedia now has an opportunity for a new face and a new direction. As a former employee of over 9 years, let’s hope for our brothers and sisters that they start making the right decisions. Regardless, I and many others will enthusiastically take care of the smalls and medium sized businesses that they fail to represent in this ever changing marketplace.

      My small business advertising site: Dallas Internet Marketing

  4. Mike Stewart says:

    55,173 views all-time
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  5. bill gibson says:

    Somethings I know and some things I don’t. What I do know is that this is just the start. Great work Mike this site is one of the major reasons he is gone. Remember it’s not over yet.

  6. Mike Stewart says:

    Site stats:
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  7. […] you seen the latest headlines about SuperMedia? (on October 5th 2010, SuperMedia CEO Scott Klein resigned, visit YellowCrooks.com for more info and participate in the […]

  8. A Baker says:

    Scoot Klein is what you call a “celebrity CEO” who saw an opportunity to take advantage of a vulnerable company and fatten his pockets. I worked for Verizon in early 2001 and resigned in early 2009 as I had enough of the BS and did not like the direction the company was going. It will take a lot of work to get the company where it needs to be and gain credibility amongst existing and previous advertisers. I can easily see the company merging with Dex and either spinning off SuperPages.com to it’s own entity or using the SuperPages.com platform to become more dominant on the local search. What used to be a solid product has now fell flat due to fraudulent sales, poor product development, and the fact the company ran experienced and dedicated employees out. Hopefully there will be some kind of investigation into the way Scott ran the company.

  9. […] **UPDATE** 10/08/2010 I just found out that my CEO, er, ex-CEO is a crook. So now you know why I have animosity towards the company – well towards him anyways. SuperMedia CEO Scott Klein Resigns Amongst Allegations of Fraud […]

  10. Ricky Wayne says:

    I know Scott Klein to be a man who puts God first, loving his family second, and third, a man that dedicated the rest of his time to saving SuperMedia.com -every hour available to him.

    Scott is a man of integrety, honesty, courage, a work ethic beyond what most of us know, caring, giving, vision, innovation, a great leader, and one that cares deeply about the employees and success of SuperMedia.com – not the destruction of it. A person that had to make tough decisions – tough on him because he knew what it would mean for many dedicated SuperMedia employees. Scott knew what it would mean for all SuperMedia employees, and clients if he did not make the tough calls. He would say, “It comes with the territory”, but that does not make it any easier.

    Most of us, commenting on this website, could not handle the stress. “We should always try to put ourselves in another’s shoes, before we pass judgement”, my mother used to say. I never forgot it.

    Scott Klein is, what most of us aspire to be – a genuinely loving, caring person that God has blessed with much success. “To whom much is given, much is required”. I know Scott always tries his best to live up to the “requirements” God gives him. How about us?

    Onward and upward, Scott

    • Mike Stewart says:

      Wow. Nobody said anything about the man’s faith.

      Why did Scott make such horrible decisions?

      “Hold your losses”

      That is all I have to say about that sir. Nice to know the man has friends, someone needs to pay for bail. Lol.

  11. BelowmeSupermedia says:

    Scott Klein a caring man with integrity and honesty? Talk about Kool-Aid drinking! I have seen many CEO’s of yellow pages companies over the years and Klein was without question the most inept I’ve ever encountered. The dot com financials were embellished fraudulently by design and mandates to hold losses until after a certain time are not the morals of a trustworthy man. He takes millions in bonus money and ships jobs to India in the same breath? Do as I say and not as I do, heathen. Let the clowns who let Klein plunder this company without so much as an ounce of protest go down with his ship. Their silence in not protesting his insanity speaks well of their inability to manage and the new CEO should flush the gutless wonders away. While the ship was sinking the rats such as the EVP’s and RVP’s just hung on to Klein’s raft while the rest of us went down. How many good people – experienced, honest professionals – were lost because of how wrongly they were treated? You just don’t replace those people with the magic wave of a hand. It will take years if ever to bring back what they took leaving the business. Klein was captain of his ship and when it went down he already had his treasure stashed. A giving man, yes, but to himself first and foremost. Good riddance.

  12. SuperEx says:

    NEWS FLASH!!!!!

    Mike Pawlowski and David Bethea, the East and West EVP’s under Klein, are out as of 11/30/2010. They are being replaced by Dex people which would indicate that Supermedia management is being eliminated(any surprise?) in preparation for a merger with Dex.

  13. Concerned Employee says:

    If Dave Bethea is leaving SuperMedia, how long do you think it will be before Lane Siddall, his puppet, will be gone? Those of us that have to deal with this idiot will be glad to see him leave. He is of no value to this company and should never have been given the position he currently has because he has no clue how to do it or even how to deal with his subordinates. His closed door policy is an annoyance to those of us that really work for a living.

    • Mike Stewart says:

      Lane was Dave’s neighbor. He was a yellowbook employee. He made money trading Idearc stock during the quiet period, according to speculation. His employment at the company, like Dave Bethea, is very much nepotism and cronyism. I think he, like Dave Bethea, should never have been hired from the get go. Just proves that to be management at StupidMedia, it is not what you know, but who you know.

  14. […] The busiest day of the year was October 5th with 6 views. The most popular post that day was SuperMedia CEO Scott Klein Resigns Amongst Allegations of Fraud. […]

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