 |
Sarbanes-Oxley News & Developments
Groundwork Laid for MCI ReformsThe chairman and CEO role at former WorldCom Inc. will be separated and shareholders will gain say.
> > With WorldCom now doing business as MCI and expected to emerge from bankruptcy shortly, a report by former SEC chairman Richard C.Breeden is designed to shepherd the scandal-tarnished company into becoming a model of good governance.
Michael Capellas, chairman and CEO of MCI, and the company directors - all put into place after WorldCom scandal last year - unanimously supported recommendations made by Breeden.
Recommendations cover everything from how directors should be picked to how the company reports financial results. The basis for a new corporate constitution that can be changed only with shareholder consent.
Shareholders will in the future have a stronger voice in setting limits of behavior. One new director must be elected each year, and shareholders can nominate their own candidates. Breeden wants the board to be fully independent, with the exception of the CEO / who cannot also serve as chairman or sit on other corporate boards.
Source: SiliconValley News
Published:2003-08-26
|
|
