Wednesday, June 26, 2002
Minding the Store:
The Board of Directors at WorldCom Inc.
Now that we’ve learned the former managers of WorldCom Inc. engaged in what may turn out to be the largest case of accounting fraud in history, placing the future of the firm in jeopardy, we thought it would be interesting to take a look at the board of directors, the illustrious group of men and women elected by shareholders to oversee management’s performance.
Our quick take on the board: A disaster in the making.
The board includes far too many WorldCom insiders and executives of firms acquired under the direction of former chief executive officer Bernard J. (Bernie) Ebbers.
The independent directors included a law professor, a former hotel-industry executive, two investors of some sort, and Gordon Macklin, a former president of the National Association of Securities Dealers Inc. (NASD) and former chairman of Hambrecht & Quist.
According to the company’s latest proxy statement, the board includes:
James C. Allen, a director of WorldCom since March 1998. Allen is currently an investment director and member of the general partner of Meritage Private Equity Fund, a venture capital fund. Allen was vice chairman and chief executive officer of Brooks Fiber Properties from 1993 to 1998, when it was acquired by WorldCom, and president and chief operating officer of Brooks Telecommunications Corp. from April 1993 until it merged with Brooks Fiber Properties in 1996.
Judith Areen, a director of WorldCom since September 1998. Areen has served as executive vice president for law center affairs and dean of the Georgetown University Law Center since 1989. She has been a law professor at Georgetown since 1976.
Carl J. Aycock, a director of WorldCom since 1983. Aycock was secretary of WorldCom from 1987 to 1995 and was secretary and chief financial officer of Master Corp., a motel management and ownership company, from 1989 until 1992. Since 1992 Aycock has been self employed as a financial administrator.
Max E. Bobbitt, a director of WorldCom since 1992. Bobbitt has been a telecommunications consultant from 1998 to the present. Bobbitt was president and CEO of Metromedia China Corp. from 1997 to 1998 and president and CEO of Asian American Telecommunications Corp. from 1996 to 1997, when it was acquired by Metromedia China.
Francesco Galesi, a director of WorldCom since 1992. Galesi is chairman and CEO of the Galesi Group, which includes companies engaged in real estate, telecommunications, and oil and gas exploration and production.
Stiles A. Kellett, a director of WorldCom since 1981. Kellett has been chairman of Kellett Investment Corp. since 1995.
Gordon S. Macklin, a director of WorldCom since September 1998. Macklin has been a corporate financial advisor since 1992. From 1987 through 1992, he was chairman of Hambrecht & Quist Group, an investment banking and venture capital firm. Before that, Macklin was president of the National Association of Securities Dealers Inc. from 1970 to 1987. He was also chairman of the National Clearing Corp. from 1970 to 1975 and was a partner and member of the executive committee of McDonald & Co. Securities Inc., where he was employed from 1950 to 1970.
Bert C. Roberts, chairman of the board and a director of WorldCom since September 1998. Roberts was chairman of the board of MCI Communications Corp. from 1992 to 1998, CEO of MCI from 1991 to November 1996, president and chief operating officer of MCI from 1985 to 1992, president of MCI Telecommunications Corp., a subsidiary of MCI, from 1983 to 1992.
John W. Sidgmore, vice chairman of the board and a director of WorldCom since late 1996. Sidgmore was chief operations officer of WorldCom from 1996 to 1998 and previously held executive positions with MFS Communications Co. and UUNet Technologies Inc. He is currently CEO of WorldCom.
Also on the board of directors of WorldCom, until they were separately fired this year:
Bernard J. Ebbers, a director of WorldCom since 1983. Ebbers was president and CEO of WorldCom from 1985 to 2002.
Scott D. Sullivan, a director of WorldCom since 1996. Sullivan was chief financial officer, treasurer, and secretary of WorldCom from 1994 to 2002.The Rittenhouse Review | Copyright 2002-2006 | PERMALINK |