Sep 23, 2010
The Real Matt Doheny Record? $35 Million in Bonuses, 500 Workers Fired
If Wall Street’s Matt Doheny (NY-23) wants to talk about his background as a businessman he has some explaining to do. A look at Wall Street Doheny’s record shows that while he got rich and took care of his fellow millionaires to the tune of $35 million in bonuses, nearly 500 American workers were fired. Matt Doheny has shockingly touted his work for Adelphia Communications, the work which is at the center of this controversy, and while his history may score him points with millionaire executives, it also proves how wrong he is for Upstate New York.
"With Wall Street Matt Doheny's help, Adelphia executives got $35 million in bonuses and fired nearly 500 American workers. That's hardly the kind of record Matt Doheny should be touting, let alone trying to sell to Upstate New York,” said Shripal Shah, Regional Press Secretary for the Democratic Congressional Campaign Committee. “Upstate New York simply can’t afford Wall Street’s Matt Doheny.”
Doheny likes to tout his work for Adelphia Communications. “The candidate [Matt Doheny] said Adelphia Communications, once the fifth-largest cable company, had financial, legal and operational problems and was host to corporate fraud. He led the restructuring of the Pennsylvania cable company on behalf of Deutsche Bank after it filed bankruptcy in 2002 and before it was acquired by Time Warner Cable in 2006." [Watertown Daily Times, 7/1/10]
But with Matt Doheny’s help, once Adelphia filed for bankruptcy in 2002, executives got $35 million in bonuses while approximately 500 people were fired. In 2002, Adelphia filed for bankruptcy, amidst two federal grand jury investigations and an SEC investigation stemming from large undisclosed loans to the company’s owners. In 2003, Adelphia’s board approved a plan to pay $35 million in bonuses and $5.7 in severance for more than 200 executives over three years. Approximately 500 people were fired. The Rocky Mountain News reported that one executive had $15 million in compensation authorized at the same time workers were being fired. [Rocky Mountain News, 8/24/06; Washington Post, 9/16/04; New York Times, 6/26/02]