FairPoint stands by Johnson as chairman, CEO

Johnson's contract expires at the end of next year.

After The Wall Street Journal reported the search was under way, the telecommunications carrier issued a news release Thursday saying its board "has reaffirmed" Johnson's standing as chairman and CEO.

Johnson, 61, a co-founder of FairPoint, has been CEO since January 2002 and previously served as chief development officer.

His employment agreement was extended in April 2008, and is set to expire Dec. 31, 2009. No deadline has been set to find Johnson's successor, FairPoint said.

FairPoint said its board "is taking the necessary steps for succession planning, including forming a search committee and engaging an outside executive search firm. Mr. Johnson has indicated his desire to retire after the company successfully completes the systems transition of its newly acquired northern New England business and once a successor is in place."

Last spring, FairPoint bought Verizon Communications Inc.'s land operations in Maine, New Hampshire and Vermont for $2.3 billion in a deal that included 1.6 million phone customers and 230,000 high-speed Internet customers.

The Journal's report about the search for Johnson's successor cited people familiar with the matter. The newspaper did not name the sources.

FairPoint owns and operates local communications exchange companies in 18 states that offer voice, data, Internet, television and broadband services.

On Wednesday, shares of FairPoint closed at $4.30, near the bottom end of the stock's 52-week range of $3.26 to $16.57.