American Tower Corporation has announced the appointment of Eugene (“Bud”) Noel as Executive Vice President and Chief Operating Officer (COO), effective January 13, 2025. This newly created global position is set to streamline the company’s worldwide operations and IT functions, reinforcing its commitment to operational efficiency and delivering top-tier service to its extensive global client base.
Mr. Noel, who currently serves as Executive Vice President and President of the U.S. Tower Division, joined American Tower in 2011 as Senior Vice President, U.S. Tower Operations. His extensive industry experience spans over 25 years, including senior roles at Sprint Nextel and LightSquared. Under his leadership, American Tower’s U.S. business has seen significant improvements in efficiency, asset quality, and customer service.
Steve Vondran, President and CEO of American Tower Corporation, expressed enthusiasm for the leadership transition. “I am thrilled to welcome Bud to his new role. His experience and strategic approach to operations will further our efforts in driving innovation and enhancing service for our global customers,” Vondran said. “The creation of this global COO position underscores our commitment to operational excellence.”
Leadership changes in U.S. division
Simultaneously, Richard (“Rich”) Rossi, currently Senior Vice President and General Counsel of U.S. Tower, will succeed Mr. Noel as Executive Vice President and President of the U.S. Tower Division. With over two decades of experience at American Tower, Mr. Rossi has played a pivotal role in shaping the company’s sales, marketing, finance, real estate, and operations strategies. His deep understanding of the industry and the company's key customer relationships will be invaluable as he assumes his new role.
2024 Tax report highlights
Alongside its leadership announcements, American Tower has released its 2024 tax reporting information, shedding light on key aspects for investors. The company, structured as a real estate investment trust (REIT), distributed a total of $6.56 per share in dividends over the course of the year, with quarterly payments as follows:
Q1: $1.70 per share
Q2-Q4: $1.62 per share each
For investors, the tax treatment of these distributions is crucial. Only 1.2% of the dividends qualify as “qualified dividends,” which generally benefit from lower tax rates. However, the bulk of the distributions fall under Section 199A dividends, offering a potential 20% deduction on qualified business income for most investors.
A notable component is the Section 897 ordinary distribution, which represents approximately 29% of each payment. This is particularly relevant for foreign investors, as these amounts are subject to FIRPTA (Foreign Investment in Real Property Tax Act) withholding rules.
For domestic investors, the majority of dividends are classified as ordinary taxable dividends, subject to regular income tax rates but with the advantage of the Section 199A deduction. The consistency in the Q2-Q4 distribution structure provides a stable foundation for tax planning, though the slight reduction from the Q1 payment suggests a cautious approach to managing distributions.
In summary, as American Tower strengthens its leadership with the promotion of seasoned executives like Bud Noel and Rich Rossi, the company continues to demonstrate its strategic focus on operational efficiency and investor value. The tax insights for 2024 offer important considerations for both domestic and international stakeholders as they navigate their tax obligations.
American Tower remains well-positioned to leverage these leadership changes and financial strategies to drive growth in the telecom tower industry.
