Level 3 doubles CEO’s salary

Level 3 Communications doubled the salary of its chief executive officer, James Crowe, in February, following a highly acquisitive year for the company.

The compensation committee of the company’s board agreed to increase Crowe’s base pay from $375,000 to $750,000. Even at this level, however, his salary is “at the low end of the competitive range” of Crowe’s peers, the company maintained in regulatory filings recently.

This is the first increase in base salary Crowe has seen since a 2.6% increase in 2003.

Crowe also received a $4 million annual bonus for 2006—double the amount it was in 2004. Adding together his salary, bonus and other compensation, plus more than $1.4 million in stock and another nearly $2.6 million in options, the company lists Crowe’s total compensation for 2006 as $8,737,825.

Last year was a whirlwind for the carrier. It acquired six companies, shed its software distribution business and raised nearly $3 billion in capital through 10 financial transactions. Crowe exceeded performance expectations in several areas during the year, the company said. For example, revenue and gross margin goals related to both Level 3’s core business and its legacy businesses were surpassed last year. And the majority of the integration of WilTel Communications, whose acquisition greatly increased Level 3’s size, was completed last year.

Crowe, who advises the committee on other executives’ compensation, recommended salary increases between 29% and 49% for the company’s other four top executives. The committee approved that recommendation.