Vogel Defends Charter Despite Slump7/23/2002 11:26 AM Eastern
Charter Communications Inc. CEO Carl Vogel lamented his MSO's sluggish stock
but said the company is on the right track by focusing on adding new
'We are all extremely disappointed in the stock price,' Vogel said. 'We're
trading at 6.2 times cash flow, or $2,100 per subscriber. That's a significant
Charter stock has fallen 84 percent since the beginning of the year. The
stock continued to drop Tuesday, closing at $2.66 per share, down 50 cents.
Speaking at the company's annual shareholders' meeting Tuesday in Bellevue,
Wash., Vogel said Charter is among the leaders in providing new services to
customers, and it will continue that tradition.
He added that capital once spent to acquire systems will now be focused on
products and services that will deliver revenue growth.
'Those of you who have participated in Charter's journey over the past
several years know that we have spent much of our energy and much of our capital
to acquire critical mass,' Vogel said. 'That effort is now largely complete, and
our profile today is not one of an acquisition company, but of an operating
Vogel added that he believes in Charter's growth potential, and he has put up
his own money to back that up. Vogel said he has spent about $750,000 purchasing
Charter common stock and convertible bonds -- more than he has drawn in salary
from the company in the past 10 months since he became CEO.
He also smarted at shareholders during the meeting who suggested that Charter
executives were giving themselves hefty raises.
Vogel added that Charter executives have been asked to do a lot more in the
past 10 months, and their pay is about in the middle of their peer group.
'With respect to me personally, I'm being paid less than my predecessor
[former CEO Jerald Kent],' Vogel said. 'And I think you're getting a hell of a
lot more value.'