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EMAIL THIS | Close Executives in top US collapses made $3.3bn By Ien Cheng in New York Published: July 30 2002 20:22 | Last Updated: July 30 2002 20:22 Top executives and directors of the biggest US business collapses amassed billions in salary and share sales while the stock market was still booming, according to a Financial Times survey. In just three years, they grossed about $3.3bn before their companies went bust, having wiped out hundreds of billions of dollars of shareholder value and nearly 100,000 jobs. The survey backs the words of Alan Greenspan, US Federal Reserve chairman, who two weeks ago attacked the "infectious greed" that distorted American capitalism during the late 1990s - an era in which achieving long-term corporate success was not necessary for managers to reap vast personal rewards. Among the biggest winners were the former executives of Enron, Global Crossing, and WorldCom - the telecoms giant that last week became the largest ever US bankruptcy. Executives and directors at these and other failed companies have been attacked by politicians and activist shareholders for making personal fortunes at the expense of their company's long-term success. In the three years from 1999 alone, Ken Lay of Enron grossed $247m while Gary Winnick of Global Crossing - the survey's top-earning baron of bankruptcy - grossed $512m. Such cases are fuelling Congressional efforts to reform corporate America, most notably the accountancy and corporate fraud reforms that President Bush signed into law on Monday. The legislation creates a new board to oversee the accounting industry and increases penalties for executives who commit fraud. Although there is no evidence that any of the executives broke any laws, the sums involved have led to calls for directors to be forced to hand back gains made shortly before companies fail. Other winners among the barons of bankruptcy include less well-known figures such as K.B.Chandrasekhar, an entrepreneur who founded Exodus Communications and sold more than $131m worth of shares before the company collapsed. The FT's survey, the first systematic study of executive gain at companies that went bankrupt amid the recent economic downturn, covers the 25 largest US companies to go bust in the past 18 months. It includes salaries and proceeds from share sales between 1999 and 2001. Of the 208 executives and directors included in the survey, 52 individuals grossed more than $10m, 31 more than $25m, 16 more than $50m, and eight more than $100m. The survey also examines the often controversial ways in which executives made their millions, including severance and retention bonuses, dividends on shareholdings and forgiven loans. = requires subscription to FT.com Find this article at: http://news.ft.com/s01/servlet/ContentServer?pagename=FT.com/StoryFT/ FullStory&c=StoryFT&cid= 1028039797414&p=1012571727088 EMAIL THIS | Close Check the box to include the list of links referenced in the article. ~~~~~~~~~~~~~~~ A<>E<>R + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + Forwarded as information only; no automatic endorsement + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + In accordance with Title 17 U.S.C. section 107, this material is distributed without charge or profit to those who have expressed a prior interest in receiving this type of information for non-profit research and educational purposes only. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + + "Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut." --- Ernest Hemingway -------- End of forwarded message -------- <A HREF="http://www.ctrl.org/";>www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance�not soap-boxing�please! These are sordid matters and 'conspiracy theory'�with its many half-truths, mis- directions and outright frauds�is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html";>Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/";>ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om
