IDT Changes CEOs

IDT founder and chairman, Howard Jonas, to become CEO upon the retirement of the current chief, Jim Courter

October 3, 2008

1 Min Read

NEWARK, N.J. -- IDT Corporation (NYSE: IDT; IDT.C) announced today that its Board of Directors has approved a CEO succession plan, an extended employment and compensation arrangement with Howard Jonas, an agreement by its Vice Chairman/CEO to accept his base salary in IDT stock in lieu of salary and the retention of Jefferies & Company, Inc. to act as financial advisor to the Company.

IDT founder and Chairman, Howard Jonas, has agreed to become the Company’s Chief Executive Officer upon the retirement of the Company’s current CEO, Jim Courter. Mr. Courter’s current employment contract expires on October 21, 2009.

Mr. Jonas will enter into a five-year employment agreement with IDT, providing for the payment of his base compensation in shares of Common Stock for the five-year period beginning on January 1, 2009. This includes the previously announced agreement with Mr. Jonas to accept shares of Common Stock in lieu of base compensation for the first three years of that period. Under the Agreement, Mr. Jonas will receive a total of 3,518,518 shares of Common Stock in lieu of compensation in the fourth and fifth years of the agreement, and the restrictions on these additional shares will lapse at the end of the term of the agreement. The arrangement is subject to finalizing a revised definitive employment agreement between the Company and Mr. Jonas.


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