Hey buddy: can you spare some change?

November 8, 2004

Global Crossing (GLBC) , a poster-child for all that went wrong during the big bubble, filed its first proxy in more than three years late Friday. The company, which emerged from bankruptcy last year, said last month that it planned to cut 15% of its workforce and needed to raise $40 million in additional financing before the end of the year. Perhaps it should look to its CEO and hit him up for some money. In the proxy, the company notes that it forgave $15 million worth of loans to CEO John Legere in 2001 and 2002 under the terms of his employment contract. That’s on top of the nearly $15 million in bonuses that the company gave him over the past three years and the $2.5 million in salary he collected as the company struggled to reposition itself. Meanwhile shareholders haven’t done quite as well. When the company emerged from bankruptcy last December, its shares were trading in the $30s. Today, they’re in the low teens.

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