America's Worst Board Members: Michael B. Yanney Of Level 3

Level 3 (NASDAQ: LVLT), by almost any measure, has been one of the worst run large American companies over the last five years. The firm lost $623 million in 2010 on revenue of $3.59 billion. Level 3’s net loss from 2006 to 2010 was $3.47 billion.

James Q. Crowe has been Chief Executive Officer of the huge ISP since August 1997 and a director since June 1993. The company’s performance has deteriorated sharply during the last five years of his tenure. Level 3 shares are down nearly 70% and its stock now trades at just above $1. Crowe was been paid $16 million by the board from 2006 to 2009. It is surprising he kept his job based on Level 3’s performance.

Michael Yanney has been a director of Level 3 since March 1998. He has been on the board’s nominating and governance committee. Yanney was paid $208,863 in 2009, according to the Level 3 proxy.

As a senior director Yanney has clearly done nothing to improve the performance or force out CEO Crowe or Chairman Walter Scott, Jr.  Scott has been chairman since 1997 and a board member since 1964. He and Crowe have been entrenched in their positions for far too long. Yanney and the board have a responsibility to remedy that. But, over the course of 13 years, particularly the last five, Yanney hasn’t bothered.

Douglas A. McIntyre