Cincinnati Bell Shareholders Sue Over Execs' Raises

Law360, New York (July 5, 2011, 10:33 PM EDT) -- Cincinnati Bell Inc. shareholders filed a derivative suit Tuesday in Ohio federal court claiming the telecommunications company's board breached its duty to shareholders by approving large raises for executives despite poor financial earnings in 2010.

In a complaint filed in the Southern District of Ohio, the shareholders, led by the NECA-IBEW Pension Fund, say the company violated its own "pay-for-performance" policy by increasing executives' salaries between 54 and 80 percent in a year when the company's net income declined $61.3 million and its annual shareholder return...
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