Company: McLeodUSA Incorporated
Company Description: McLeodUSA is one of the nation’s largest independent competitive telecommunications service providers, offering integrated local, long distance, Internet and advanced communications services to homes and businesses in 25 states. The Company is a facilities-based provider with over 1 million access lines in service and annual telecom revenues of approximately $1 billion.
Nomination Category: Individual Awards Categories
Nomination Sub Category: Best Executive

Nomination Title: Chris A. Davis, Chairman and Chief Executive Officer

1. Tell the story about what this nominee achieved in 2002 (up to 500 words). Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms. Be sure to mention obstacles overcome, innovations or discoveries made, and outcomes:

   Since joining McLeodUSA in August 2001, Chris A. Davis has lead the rebirth and turnaround of Cedar Rapids, Iowa-based McLeodUSA Inc., one of the nation’s largest independent telecommunications service providers.

   Ms. Davis, with the support of major McLeodUSA shareholder Forstmann Little & Co. and new board members, executed a redesigned business strategy for McLeodUSA which included the sale of non-core businesses, balance sheet recapitalization, a new marketing/product and branding strategy, rebuilding relationships with customers, and employee quality training and certification programs.

   At the beginning of 2002, Ms. Davis had been with McLeodUSA for only three and a half months and had never personally led a restructuring under such poor industry conditions. McLeodUSA had reached a nadir -- it had an unsupportable combination of 8,600 employees and approximately $4 billion in debt, with annual interest payments of $365 million, and the quality of its services had deteriorated.

   Ms. Davis focused McLeodUSA’s strategy on 25 states, sold $1.1 billion of non- core assets, consolidated facilities, and scaled back capital expenditures from approximately $750 million in 2001 to $150 million in 2002. She held marathon late night meetings with managers to determine required job skills, assess operational process issues and evaluate excess cost structure. Working tirelessly through January, Ms. Davis accomplished a major victory when the Company’s bank lending group agreed to allow McLeodUSA to sell assets to repurchase bonds, and the bondholders agreed to accept cash and stock exchange for their bonds. Soon thereafter, she guided McLeodUSA through one of the all-time fastest bankruptcy proceedings -- only 75 days. Upon emerging from bankruptcy in April, the Company’s debt had been reduced to about $715 million, and interest payments to about $40 million, and Ms. Davis had announced new executive team members and board directors.

   McLeodUSA reported positive earnings before interest, taxes, depreciation and amortization in its telecom business of $6 million in June, $10.3 million in September and $11.4 million in December 2002 – the first time ever in the Company’s history. At the end of 2002, the Company employed 3,700 people, has reduced its billing systems from 27 to 2, overhauled and simplified its products, including reducing feature codes from 5,400 to less than 200, had reduced new customer installation times by 65%, and had cut employee turnover by 75%. It has also launched its new “Preferred Advantage” product offerings, which include simplified local and long-distance, Internet and voicemail services for residential and small/medium sized businesses and advanced communications solutions for larger businesses.

   The Company also launched its first major marketing and advertising campaign (resulting in a 30% increase in website traffic and a 10% increase in call volume), as well as its “Star Quality” employee training and certification program, which will train each employee in industry-leading customer and network techniques.

   Under her leadership and under extreme business circumstances, Chris Davis has moved McLeodUSA from the tenuous position it was in during 2001 into a solid, well-managed business again with a vision for growth, profitability, and opportunity.

2. List hyperlinks to any online news stories, press releases, or other documents that support the claims made above. To include a URL you must begin and end the URL with a square-bracket and include http:// Example: [http://www.yourdomain.com]

   Supporting materials for this nomination were submitted offline.

3. Provide a brief (up to 100 words) biography about this nominee:

   Chris A.Davis joined McLeodUSA in August 2001 as Chief Operating and Financial Officer, member of the Board of Directors and the Board’s Executive Committee. She was named Chairman and Chief Executive Officer in April 2002. She served from May 2000 to August 2001 as Executive Vice President and Chief Financial and Administrative Officer of ONI Systems. From July 1993 through April 2000, Ms. Davis was Executive Vice-President, Chief Financial and Administrative Officer, member of the Office of the Chief Executive and the Board of Directors for Gulfstream Aerospace Corporation. Before joining Gulfstream, Ms. Davis spent 17 years at General Electric Company.