Comments on: Behind the boardroom door…

By: T

Tue, 10 Feb 2009 16:53:36 +0000

Markopolos and Hallagan – 2012

By: Debunkr

Debunkr — Tue, 10 Feb 2009 04:40:25 +0000

That kind of crap happens every day in every corporation in America. It’s all about the struggle for power which was very clearly laid out in this email. This was a text book case of control conflicts between a Board Member and the CEO. I actually don’t agree that the Halligan is above reproach here. It’s clear that he had a style difference and couldn’t find synergy with the other board members to put the CEO in check. The flip side is that the obsequiousness of the other board members is an example of how Board of Directors are suspect number one in terms of not preventing corporate fraud and abuse.

By: Frank Graham

Frank Graham — Tue, 10 Feb 2009 03:37:39 +0000

Thanks for clarifying that number. This is all so mind boggling that one barely knows b from m not cares
half the time. It’s a rip at any amount.
Loved peek into 8-K dirty linen. Emails, and esp their
father-son conflict part was just too sick, lol.
Just heard some comment-news tonight that Madoff looks to have beaten all the civil charges against him in return for some things. Maybe a confession and attempt to repay what he can? Still faces some criminal charges. Gets to stay in the $7m penthouse (til they prob kick him out).
Along with this is today’s HY Post on Madoff-Tucker team. Tucker is out $7.5b (B) as co-founder.
Operated a fund out of Conn. Big 210 acre horse farm upstate
in ritzy Saratoga NY area. Has to sell all their goodies to try and cover those losses. He’s been in news but very little big splash on this guy.
Going to make hell of movie! Short story of Tucker toys.
http://www.nypost.com/seven/02092009/business/madoff_sell_off_154171.htm

By: Michelle Leder

Michelle Leder — Mon, 09 Feb 2009 22:23:11 +0000

@ George: Agreed. It would be good if some larger companies added more people like Halllagan to their boards. But I doubt that’s likely to happen.

By: Michelle Leder

Michelle Leder — Mon, 09 Feb 2009 21:05:55 +0000

@ MarkM: Thanks for bringing that mistake to my attention, which I've fixed. The correct number is over $2 million for S&P 500 directors. And that number is an aggregate of all directors on the board, as opposed to individual directors who receive on average $200K. Here's a snippet from The Corporate Library study released earlier today:

Median total board compensation for S&P 500 firms is more than $2 million.
Median total compensation for individual directors of S&P 500 companies is just under $200,000.
In contrast to their CEO colleagues, compensation for directors in the S&P 500 did not increase by more than that for directors of smaller companies.
Company size is the greatest influence on board and director compensation.

By: Mark M

Mark M — Mon, 09 Feb 2009 20:58:26 +0000

With respect to the comment on average director comp–you mean million? Even that seems way too high to believe…..

By: George

George — Mon, 09 Feb 2009 18:28:47 +0000

Wow, that was a great find, Michelle! I hope one of my companies picks up Thomas W. Hallagan for their Boards. He seems exactly like the type of Board member you want as a shareholder. It might be worth watching where he goes in the future.