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Meyers to Return to First Marblehead

August 21, 2008

BUSINESS IN BRIEF

MEYERS TO RETURN TO FIRST MARBLEHEAD

BOSTON – First Marblehead Corp. co-founder Daniel Meyers will return to the struggling student loan services company as its new CEO on Sept. 1. Meyers will replace Jack Kopnisky, whose pending resignation became public on Monday.

The Boston company, which provides services for companies that make student loans, has been losing money following the collapse of the credit markets and the withdrawals of several clients from the student loan market.

Meyers helped launch First Marblehead, which is based in the Back Bay, in 1991, and he was its CEO until 2005. Meyers will receive an annual base salary of $1, but the company will accrue $1 million per fiscal year without interest that will be paid to Meyers after the firm’s next profitable fiscal year. He also received a sizable package of stock options from the company.

Investors appeared to be enthusiastic about the personnel change at the top of First Marblehead, and sent shares in the company up 71 percent to close at $5.14 a share on Monday.

GAS PRICES DROP 8 CENTS IN MASS.

Gas prices continued their return to earth in the past week, with the statewide average dropping eight cents a gallon to $3.71 a gallon on Monday, AAA Southern New England said. The motorists’ group said the average price has declined by 38 cents per gallon in Massachusetts during the past six weeks. But there are many price disparities, with prices ranging in Massachusetts from $3.52 a gallon to $4.20 a gallon. The state average currently is four cents per gallon below the national average. A year ago at this time, the state average was $2.73 a gallon.

CONTEST BEGINS FOR BEST MOBILE PHONE APPLICATION

AT&T Inc. is billing it as a “high-tech version of ‘American Idol’”: a competition to find the best mobile phone application in New England. The telecom company launched its Fast-Pitch New England contest on Monday and will continue to accept entrants through the end of September. The winner of the best mobile phone application – they can be applications used to browse, send messages or download – will win $10,000 in cash, promotions in AT&T’s New England stores, and a fast-track for wider distribution on one of AT&T’s mobile download portals.

UFOOD TO OPEN FIRST MALL RESTAURANT

NEWTON – UFood Restaurant Group will open its first mall restaurant at the Westfield Galleria in Roseville, Calif., by the end of the year. The location is the second in Roseville for UFood’s Sacramento-area franchisee. Newton-based UFood specializes in healthy fast food. Restaurants are attached to retail stores selling nutritional supplements. The company currently has nine locations, including five in Massachusetts, one in Illinois and one in Florida.

EVENT TO HELP SOME GET STIMULUS CHECKS

QUINCY – Quincy Community Action Programs Inc. is holding an event on Saturday to help eligible retirees and disabled veterans file for their economic stimulus checks. The event will take place from 10 a.m. to 3 p.m. at 1511 Hancock St. in Quincy, and appointments can be made by calling 617-479-8181, Ext. 304. Many retirees and disabled veterans who don’t normally file income tax returns are still eligible for this year’s income tax rebate.

The IRS estimates there are more than 100,000 people in the state who are eligible but have not filed the proper paperwork. Eligible recipients can receive up to $300 for individuals, $600 for married couples, and an additional $300 for each eligible child under 17 years old.

Patriot Ledger staff

(c) 2008 Patriot Ledger, The; Quincy, Mass.. Provided by ProQuest LLC. All rights Reserved.




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