Thursday, September 26, 2002

When the Times was shining its spotlight on Enron, its critics were quick to claim political partisanship. But they're being just as hard on Tyco, which isn't nearly as politically connected. (Remember, Enron was at one point almost running Dubya's energy policy).

What the two have in common is that they provide an interesting look at modern American corporate governance, the major differences being that the frauds at Tyco were so much more transparent, and that there is (so far) more direct evidence of actual malfeasance by members of the board of directors at Tyco. (Though at Enron, the board's own report on the shenanigans there showed that it was, at best, shockingly lax in its oversight of the company's affairs).

Even as the scandal unravels, they're still at it: the Times today reports that they awarded their former CFO a compensation package worth nearly $45 million while he was already known to be under a grand jury investigation, which later quickly resulted in an indictment. This package was approved by two board members on the compensation committee, and was not disclosed to shareholders.

Nice work if you can get it.


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