IDT Corporation (NYSE:IDT), a global provider of telecommunications and payment services, today announced that Howard Jonas, the Company’s founder, Chairman and CEO, will step down as Chief Executive Officer upon the expiration of his current employment agreement on December 31, 2013. IDT’s Board of Directors has named IDT’s Chief Operating Officer, Samuel ‘Shmuel’ Jonas, to be CEO. Howard Jonas will continue to remain actively involved in the Company in his capacity as Chairman.
Howard Jonas, who was IDT’s first CEO after founding the Company in 1990, has most recently served in that capacity since October 2008. During this tenure, Mr. Jonas led the effort that returned IDT’s core telecom business to profitability. IDT has been steadily profitable in recent years and pays a regular quarterly dividend.
As part of the turn-around effort carried out during his tenure as CEO, Mr. Jonas fundamentally re-shaped IDT. He sold or shut down many non-core businesses and spun-off several others to IDT stockholders. The spun-off companies, CTM Media (CTMMA, CTMMB), Genie Energy (NYSE: GNE, GNEPRA) and Straight Path Communications Inc. (NYSE MKT: STRP), all continue to do very well. The combined market caps of IDT and these three public companies increased by approximately $900 million during Mr. Jonas’ tenure as Chairman and CEO of IDT.
“I am deeply grateful to our employees and loyal stockholders for persevering with me through some very difficult times to rebuild IDT. I’ve been honored and privileged to work with many wonderful colleagues, and they are largely responsible for the substantial progress we have made,” said Mr. Jonas.“We have restored IDT to profitability and built a solid foundation for future growth. Looking ahead, we are blessed with abundant opportunities and capable management to pursue them. In my capacity as Chairman, I am looking forward to continuing to collaborate with the Board and with Shmuel and his management team and to provide them with strategic guidance and direction,” he concluded.