Corporate and Executive Spending
Global Crossing's rapid rise and fall attracted tremendous attention. Four of Global Crossing's CEOs received at least $23 million in personal loans from the company, some of which were forgiven entirely even when bankruptcy was becoming a greater possibility. The same CEOs also received lucrative stock options and $13.5 million in after-tax signing bonuses. Between 1998 and 2001, Winnick sold approximately $420 million in Global Crossing stock, and other executives sold an additional $900 million.
Winnick's spending was criticized. Many employees lost more than their jobs when the company filed bankruptcy. Even as the company's financial situation deteriorated, work continued on Winnick's Bel Air mansion, valued at $92 million. Winnick purchased the 30,000-square-foot (2,800 m2) mansion on 9 acres (36,000 m2) in September 2000 from David Murdock. After the acquisition, much of the house was renovated, mechanical and electrical systems were updated, and a service wing was converted into a studio for Winnick's wife Karen. Winnick stated publicly that the 64-year-old estate was being "updated and freshened".
Hutchison Whampoa withdrew from its planned purchase of Global Crossing after the Committee on Foreign Investment in the United States made it clear that purchase by Hutchison would not be approved. ST Telemedia acted alone to purchase Global Crossing for $750 million, buying it out of bankruptcy and terminating Winnick's control of the company.
Read more about this topic: Global Crossing
Famous quotes containing the words corporate, executive and/or spending:
“The corporate grip on opinion in the United States is one of the wonders of the Western World. No First World country has ever managed to eliminate so entirely from its media all objectivity—much less dissent.”
—Gore Vidal (b. 1925)
“One point in my public life: I did all I could for the reform of the civil service, for the building up of the South, for a sound currency, etc., etc., but I never forgot my party.... I knew that all good measures would suffer if my Administration was followed by the defeat of my party. Result, a great victory in 1880. Executive and legislature both completely Republican.”
—Rutherford Birchard Hayes (1822–1893)
“We should meet each morning, as from foreign countries, and spending the day together, should depart at night, as into foreign countries.”
—Ralph Waldo Emerson (1803–1882)