<PAGE>
 
                                 Exhibit 10-20


                                        



                              Frontier Corporation
                              --------------------
                                        


                         Executive Compensation Program
                         ------------------------------
                                        
                                        

                                      1997
                                      ----
                                        
                                        
 
 



                                                   June, 1997
<PAGE>
 
Compensation Philosophy
-----------------------

     The philosophy of Frontier Corporation's Compensation Program is to offer
performance-based compensation to attract, retain and motivate key employees who
are best positioned to achieve the goals of the Corporation and maximize value
to its shareowners.  The compensation program encompasses the following
elements:

                   .    Base Salary            
                   .    Annual Bonus           
                   .    Long-Term Incentive Plan
                   .    Benefits                

     The Executive Compensation Program is the responsibility of the Committee
on Management of the Frontier Board of Directors.  The Program is reviewed
annually for competitiveness.

     The following is a brief summary of the complete Executive Compensation
Program currently in place and available to senior management of Frontier
Corporation.   The Company reserves the right to change any and all aspects of
the plans included in this Program as it sees fit, from time to time.  The
benefits and perquisites addressed herein supplement the general management
fringe benefits provided by the Company.

Salary Plan
-----------

     Nine non-sales and 3 sales compensation levels are delineated within the
Program.  Salary ranges for 1997 are as follows:


     TITLE                       RANGE
     -----                       -----                 
     CEO                         $526,000 - 914,000
     Vice Chairman               $285,000 - 500,000
     COO                         $285,000 - 500,000
     Executive Vice President    $209,000 - 363,000
     Senior Vice President       $183,000 - 320,000
     Vice President 1            $159,000 - 278,000
     Vice President 2            $118,000 - 207,000
     Senior Director             $ 90,000 - 158,000
     Director                    $ 74,000 - 130,000
 
     Executive VP Sales          $159,000 - 278,000
     Senior VP Sales             $118,000 - 207,000
     VP Sales                    $ 82,000 - 155,000


                                       2
<PAGE>
 

Short-Term Incentive Plan (annual bonus)
----------------------------------------

     The Short-Term Incentive Plan (STI) is designed to provide a superior
reward to outstanding performers.  Actual bonus awards are a function of
corporate financial performance and customer and employee results during the
preceding calendar year.  For Senior Vice Presidents and above, the corporate
component comprises 100% of the measurement.  For those below Senior Vice
President, performance is measured against customer and employee objectives as
well as the corporate financial targets.

     The corporate measurement is:

       50% earnings per share
       50% revenue
 
     The Open Market Plan agreement with the New York State Public Service
Commission stipulates that employees of Rochester Telephone must be compensated
on objectives associated with its performance, not those of the consolidated
Frontier Corporation.  The Upstate Cellular Network (UCN) is a partnership
between Frontier and Bell Atlantic/NYNEX which governs its financial targets.
As such, those Rochester Telephone and UCN employees participating in the
Executive Compensation program will be measured on their respective business
unit financial objectives.

     STI pay out opportunities are as follows:

<TABLE>
<CAPTION>
                                 Threshold   Standard   Premier
                                 ----------  ---------  --------
<S>                              <C>         <C>        <C>
     CEO                           50.0%      100.0%     175.0%
     Vice Chairman*                30.0%       60.0%     105.0%
     COO                           40.0%       80.0%     140.0%
     Executive Vice President      27.5%       55.0%      96.5%
     Senior Vice President         25.0%       50.0%      87.5%
     Vice President 1              22.5%       45.0%      79.0%
     Vice President 2              17.5%       35.0%      61.5%
     Senior Director               15.0%       30.0%      52.5%
     Director                      12.5%       25.0%      44.0%
                                                      
     Executive VP Sales            22.5%       45.0%      79.0%
     Senior VP Sales**             10.0%       20.0%      35.0%
</TABLE>
*    Vacant position for which range has not been updated for current market
**   Also participates in sales incentive plan

                                       3
<PAGE>
 
     Threshold, standard and premier corporate performance objectives are
approved by the Committee on Management annually.  If threshold performance for
either the earnings per share or revenue objective is not attained, no bonus
will be paid.

     The Committee has established the following objectives for 1997:

<TABLE>
<CAPTION>
                           Threshold  Standard  Premier
                           ---------  --------  --------
<S>                        <C>        <C>       <C>
     Earnings per share     $   1.50  $   1.67  $   1.80
     Revenue (Millions)     $2,525.0  $2,693.0  $2,822.0
 
</TABLE>

     The final bonus calculation may include a discretionary component to
reflect individual circumstances for those at  Vice President 2 and above.
Discretion may account for up to + or - 25%.  The final bonus award, after
application of the discretionary factor, may not exceed the premier percent
presented above.

     For those at senior director level and below, a semi-annual bonus plan has
been established for 1997.  Details of this program are contained in separate
correspondence provided to the general employee body.

     Bonus payments are made in the first quarter following the end of the year
for which the award is earned.  Payment is usually made in a lump sum; however,
an eligible employee may defer payment of all or part of the bonus to a
subsequent year.

     The election to defer a bonus must be made prior to the beginning of the
year in which the bonus is earned.  The Company will establish an account or a
fund for maintaining a deferred bonus and will credit interest to the deferred
bonus at the rate established from time to time for interest paid on Frontier's
telephone customers' deposits.  The deferred bonus plus the earnings associated
with it will be paid to the employee as specified in the deferral election.

Long Term Incentive
-------------------

     Frontier Corporation provides long term incentives through two plans; the
Management Stock Inventive Plan and the Employees' Stock Option Plan.  Stock
Options are available in both Plans while the Management Plan also provides for
the granting of restricted stock.  The intent of both Plans is to align
employees' actions and performance with the goals and objectives of shareowners.
 

                                       4
<PAGE>
 
  .  Management Stock Incentive Plan
 
     All Executive Group participants are eligible for grants under this
     Plan.

     Restricted Stock is available as a component of compensation.
     The Plan offers flexibility such that grants may vest with passage of
     time, performance parameters or a combination of both.  Performance
     parameters may include, but not be limited to, one or more of the
     following.
                     -  total shareowner return  
                     -  earnings per share growth
                     -  cash flow growth         
                     -  return on equity          

     It is expected that restricted stock will be used selectively among the
     executive group.

     Under the Management Stock Incentive Plan either Incentive Stock
     Options or Non-Qualified Stock Options may be granted.

     The closing New York Stock Exchange price of Frontier common stock on the
     grant date becomes the exercise price at which the stock may be purchased.
     Option grants are valid for up to ten years and are exerciseable as
     follows:

     1.  Up to 1/3 of the granted options can be exercised one year
         following the date of the grant,
     2.  A second 1/3 can be exercised beginning on the second
         anniversary of the grant, and
     3.  The final 1/3 can be exercised beginning on the third anniversary.

 
  .  Employees' Stock Option Plan

     Executive group employees below the level of Senior Vice President
     are eligible for grants under this Plan.

     All options granted under this plan will be non-qualified stock options.
     The closing New York Stock Exchange price of Frontier common stock on the
     grant date becomes the exercise price at which the stock may be purchased.
     Option grants are valid for up to ten

                                       5
<PAGE>
 
     years and are fully (100%) vested and become exerciseable on the second
     anniversary of the grant date.


Executive Stock Ownership
-------------------------

     Frontier is increasingly emphasizing the importance of employee stock
ownership.  Stock ownership supports the company's objective of effective
teamwork at all levels and aligns employee goals with those of shareowners.
Stock ownership guidelines have been established for executives to be attained
over a five-year period, by the later of January 1, 1999 or 5 years after
joining Frontier.  The targets are as follows:

 
               Position                         Times Annual Salary 
               --------                         ------------------- 
                                                                    
               CEO                                      4.0      
               Vice Chairman                            4.0      
               COO                                      4.0      
               Executive Vice President                 4.0      
               Senior Vice President                    3.0      
               Vice President 1                         2.5      
               Vice President 2                         2.0      
               Senior Director                          1.0      
               Director                                 1.0      
                                                                 
               Executive VP Sales                       2.5      
               Senior VP Sales                          2.0      
               VP Sales                                 1.0       
 

Executive Benefit Plans
-----------------------

     Frontier provides an array of health care, retirement, paid time off,
holiday and sickness benefits to its employees.  The Executive group shares in
this program plus other programs, as appropriate, to offer a comprehensive and
competitive compensation package.

     Frontier has recognized the impact of legislation and various tax rulings
on executive management and has created a package of benefit arrangements to
protect its executives from some of the consequences.  These and other
supplemental benefits are highlighted below.  Some differentiation of benefits
exists among levels in the Program.

                                       6
<PAGE>
 
  .  Supplemental Retirement Savings Plan (SRSP)

     This plan provides for the continuance of 401(k) deferred compensation
     [Employees' Retirement Savings Plan (ERSP)] for highly compensated
     employees who exceed the statutory annual IRS limit for qualified plans
     ($9,500 in 1997).

     Company policy provides all employees the option to contribute up to 16% of
     their annual base salaries and annual bonuses into the ERSP program. SRSP
     is a non-qualified plan that allows those higher salaried executives to
     participate in a deferred retirement savings plan beyond the statutory
     limit up to the maximum 16% ceiling. A non-qualified plan is defined as an
     unfunded benefit plan in accordance with the Internal Revenue code. As
     such, the corporation is the ultimate payer of benefits and all accounts
     are subject to claims of the Company's creditors.

     The plan is administered by Marine Midland Bank, N.A., as its Trustee,
     which establishes individual accounts for each participant. Contributions
     to the plan can be fully invested in, or split between any of six funds
     (money market, S&P 500 Index, Putnam Income, Putnam Voyager, Putnam Global
     Growth and Frontier stock) that are currently offered. Company
     contributions, which follow the same schedule as under ERSP, are invested
     in Frontier stock. Funds will be distributed upon termination of
     employment.

  .  Supplemental Management Pension Plan (SMPP)

     This non-qualified plan allows payment above the government restriction
     applicable to qualified pension plans. If any qualified employee's age 65
     pension exceeds the limit under the Management Pension Plan (MPP), $125,000
     in 1997, the difference will be provided through corporate assets or from a
     trust established by the Company for this purpose. SMPP was frozen as of
     December 31, 1996. To participate under this plan, an individual must have
     been a Frontier employee prior to January 1, 1995 and be a participant in a
     qualified defined benefit pension plan.

                                       7
<PAGE>
 
  .  Supplemental Executive Retirement Program (SERP)

     This non-qualified program provides an enhanced retirement benefit to those
     at Vice President 1 level and above. The plan has an accrual and vesting
     schedule based on years of service and age. The maximum benefit of 60% of
     final compensation (highest consecutive three-year average salary plus
     bonus) less any amounts paid through the regular MPP and regular SMPP
     formulas, will be paid to an executive retiring at age 50 or older with 30
     or more years of service

            Accrual: 2.5% for each of the first 15 years
                     1.5% for each of the next 15 years
                     0.0% beyond 30 years

            Vesting: 0% first 5 years
                     100% for year 6 and beyond

     Participants must be age 50 or over to receive this benefit. SERP will be
     frozen as of December 31, 1999. No new participants were admitted after
     December 31, 1995. SERP participants who retire between January 1, 1997 and
     December 31, 1999 are eligible for enhanced medical and life insurance
     coverage consistent with that offered through 1996.

  .  Life Insurance
 
     Life insurance for the executive group follows the program provided non-
     bargaining unit employees through the Tel Flex Program. The Company
     provides $10,000 of insurance and the employee is able to purchase
     additional coverage in various increments up to a total of $990,000 of
     coverage. At retirement an executive may elect to continue coverage at
     his/her expense up to age 65.

                                       8
<PAGE>
 
  .  Financial Planning Services

     The Company offers executives the ability to engage an independent
     financial consultant to assist with their personal financial planning. The
     AYCO Corporation has been retained and is available to all executives
     holding the position of Senior Vice President or higher. For those
     executives wishing to select another consultant, costs associated with this
     service will be reimbursed as follows:

        -        maximum of $11,265 per year, in year one
        
        -        a maximum of $6,755 per year thereafter, until
        
        -        a maximum of $11,265 in the year preceding retirement

     Financial planning services for other executives are available as a
     component of Flexible Perquisites.

  .  Automobile/Club Membership

     All executives who hold the position of Senior Vice President or above have
     access to vehicles which are provided and maintained by the Company. The
     Company pays for parking at the Corporate Headquarters location. These
     officers are also reimbursed for membership in two clubs of his/her choice.

  .  Telecommunication Services

     Executives who hold the position of Senior Vice President or higher receive
     cellular phones and free cellular services. These individuals also receive
     totally free usage (business and personal) of Frontier Long Distance credit
     cards and local residential telephone service. Executives who were at
     senior director and above prior to January 1, 1996 receive this benefit and
     are "grandfathered" under the plan.

                                       9
<PAGE>
 
  .  Flexible Perquisites

     This plan allows executives to choose from a menu of perquisites which
     includes:
 
     - Automobile procurement allowance via purchase, financing or lease;
       operating costs are not covered by this program.

     - legal or financial counseling; tax preparation.

     - club membership and dues for luncheon or country clubs (maximum, two
       clubs); club initiation fees and usage charges are not covered by this
       program.

     - home computer and accessories.
 
     - personal excess liability insurance.

     - supplemental life insurance
 
     - telecommunications services

     The menu dollar limit is:

     CEO*                                        $40,000
     Vice Chairman*                               30,000
     COO*                                         30,000
     Executive Vice President*                    18,000
     Senior Vice President*                       15,000
     VP 1, Executive VP Sales                     12,000
     VP 2                                          8,000
     Senior VP Sales, VP Sales                     5,000
     Senior Director                               5,000
     Director                                      2,500

     *Eligible alternatively for Discrete Plan Benefits listed above.
     Additionally, anyone in a lower salary level already under an alternate or
     discrete benefit plan, as of December 31, 1995, is "grandfathered" on these
     plan benefits. If, for business reasons, the Company elects to provide a
     vehicle to an executive, the menu dollar limit will be reduced accordingly.

                                       10
<PAGE>
 
     Payments under this plan are automatically applied to the individual's
     semi-monthly pay check under a separate designation of "exec perq".

  .  Paid Time Off

     Executives are eligible for six holidays plus paid time off (PTO) to be
     used for sickness, personal and vacation needs. Annual PTO days are based
     on the following schedule:

<TABLE>
<CAPTION>
                                                  Annual days off based on years of service

                                            0-5               5-14             15-24             25 & Above
                                            ---               ----             -----             ----------
<S>                                         <C>               <C>              <C>               <C>  
CEO, Vice Chairman
COO, EVP, SVP                               39                 39                39                 39
VP 1, Executive VP Sales                                                                  
VP 2, Senior VP Sales, VP Sales             34                 34                34                 34
Senior Director                             29                 29                29                 34
Director                                    24                 24                29                 34
</TABLE>


  .  Annual Physical Exam

     All executive group employees are eligible for, and strongly encouraged to
     have, an annual company paid physical exam. Invoices should be paid by the
     employee and receipts submitted to the benefit office for reimbursement.
     Payment will be made in a subsequent paycheck and is not taxable.

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