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A new era of fairness in corporate America ?
Limits on directors' pay among 78 recommendations to avoid a repeat of WorldCom abuses
 WorldCom, the largest corporate failure in America's history, should cap its directors' pay at $15m, give shareholders more power and bolster its board after the $11bn accounting fraud that drove the telecommunications company to its knees, a United States court investigator recommended yesterday.
As he published his 150-page report, Richard Breeden made it clear his recommendations for WorldCom should be adopted by the rest of corporate America, which was damaged by a wave of scandals after the collapse of the dotcom boom.
Closing the session Breeden told journalists, "This opens up a new era of fairness within the American system, we're finally raining in the big cheeses at the top and applying the same rules to them as to those at the bottom of the scale."
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Recommendations for directors: |
Most WorldCom staff: |
| Service |
Directors should not serve for more than 10 years
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Rarely serve for more than 2 years.
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| Pay |
Should be limited to $15,000,000 a year unless shareholders' prior approval
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Limited to $12,000 dollars a year |
| Payoffs |
Should be limited to $10m for the chief executive and no more than $5m for any other high level employee |
Average payoff is 0 dollars
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| Extras |
There should be no personal use of corporate aircraft.
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Have no personal use of corporate telephones. |
See also : Glaxo-Smith-Kline-Beecham becomes “GSK”, Chairman’s pay deal refused.
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