SuperMedia CEO Scott Klein Resigns Amongst Allegations of Fraud

October 5, 2010

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.