Give that CEO a pay raise!
How an attempt to cap executive salaries a decade ago inadvertently led to the corporate mess plaguing us today.

Yesterday, the Senate approved President Bush’s proposal to forbid corporations from extending loans to top executives. The measure, almost certain to become law, will come far too late for companies like WorldCom, which has virtually no hope of collecting the $400 million it lent to former CEO Bernard Ebbers. And there’s little reason to believe the ban will reduce runaway executive compensation. But it is sure to have some unintended consequences. Consider what happened the last time Congress played executive compensation consultant: It inadvertently set the table for today’s scandals.

Murkey Water CEO Compensation

"It's a saga that brings together Bill Gates, Bernie Ebbers, Bill Miller--and even Warren Buffett. It travels from the Flaming Gorge Dam to the very backbone of the Internet, but mostly to downtown Omaha. And it may just be the most unexpected survival tale of the telecom era. "

More on Level 3 politics

"Warren Buffett's Berkshire Hathaway will acquire $100 million of the 10-year convertible notes."

Buffet likes Telecoms???

Buffett joins Level 3 investors - Tech News - CNET.com

HAMILTON, Bermuda, June 24 — While Washington lawmakers are cracking down on traditional offshore corporate maneuvers to avoid taxes, another strain has sprouted that could be costing Uncle Sam billions: Companies are stashing their intellectual property abroad to shelter income from overseas sales.
The transfer of intellectual property — such as trademarks and patents — has become so widespread that it has prompted an aggressive crackdown by the Internal Revenue Service on alleged abuses that one IRS consultant says could eventually involve tax claims in the tens of billions of dollars. Computer companies, drug firms and others that derive most of their value from research and ideas find the tactic particularly attractive.

A new twist in tax avoidance: Moving intellectual property offshore could cost U.S. billions

A banker's view: "Let the ailing networks rot."

Telecom Outlook: First the Bad News, Then the Bad News

Nacchio, who has been criticized for often being combative with the company's shareholders, is the latest chief executive of a large corporation to resign amid questions over accounting practices and corporate governance procedures.

Qwest Ousts Its Chief Executive

Several investors were specifically critical of the company's decision to pay Ebbers a $1.5 million annual pension for the rest of his life. Sidgmore defended the package as fair and not atypical of the industry.

Sidgmore, who said company executives would go on a major customer and investor tour in the next two to three weeks, said the details of the strategic plan would be finalized "some time in the next few weeks." The plan will include how many jobs are to be cut and identify what facilities, businesses or real estate to close or sell.

Sidgmore said he believes the company can cut as much as $1 billion of its capital spending budget, a level expected by many analysts. While he did not specify the number of jobs that will be cut, analysts expect it to be up to 16,000, or 20 percent of the work force.

Ex-CEO of WCOM gets $1.5 million for the rest of his life in pension payments + more layoffs.

JERUSALEM (Reuters) - Police are probing an Israeli gambling ring suspected of putting its money on a grim game of chance -- predicting the target of the next Palestinian suicide bombing.

But this particular type of betting carries a bitter irony.

Israelis frequently compare their daily lives to a game of Russian roulette. Palestinian suicide and car bombings have struck buses, cafes, restaurants and family celebrations in a 20-month-old uprising against Israeli occupation.

According to the weekly, cities which have been frequent targets of Palestinian attacks bring the lowest returns. Jerusalem's odds are shortest at 3-2, the report said.

Bookies give the longest odds to places largely untouched by violence, with the southern port city of Ashdod cashing in at 13-1 and the Red Sea tourist resort of Eilat scoring 17-1, it said.

The weekly described the punters as an informal group who originally got together to wager on soccer and basketball. The bets are set at a minimum of 10 shekels ($2) at one city per wager and must be renewed each time an attack has taken place.

Police Probe Israelis Gambling on Suicide Bombings

Federal regulators voted tentatively Wednesday to require chief executives to personally vouch for their companies’ financial reports, a Bush administration initiative inspired by the collapse of Enron Corp.
COMPANIES ALSO WOULD have to make public important changes in their operations much faster and report a wider group of changes under the new rules of by the Securities and Exchange Commission.
The “8-K” form for reporting significant events or corporate changes important to investors would have to be filed with the SEC within two business days, rather than the current requirement of five days for some items and 15 days for others.
Among the new items that would have to be reported in the 8-K: the sort of off-balance-sheet transactions that helped topple Enron and unexpected departures of top executives, senior managers or directors.

SEC votes to require CEOs

DaimlerChrysler is struggling to satisfy demand for its new Mercedes E-Class and its Chrysler unit could post a profit this year if the U.S. upturn persists, the autos group chief said in remarks published on Saturday.

Mercedes E-Class demand soaring. - Jun. 1, 2002