Sending in the repo-man?

October 6, 2004

Back in the days when companies used to extend virtually unlimited lines of credit to their top executives, a company called New Focus (NUFO), which was acquired earlier this year by Bookham (BKHM) lent CEO Kenneth Westrick $8 million. Westrick left the company in October 2001, a few months after getting the loan and repaid some of it. But the bulk of what he owes — $5.9 million — is still due and Bookham, which inherited the IOU, now estimates that Westrick owes $6.4 million. In its recent K, Bookham adds that it plans to pursue collection against Westrick, 47, who currently sits on the board of Proxim (PROX) . Now maybe it’s just me, but it sure seems like there ought to be a rule that prevents someone who’s defaulted on a loan at one public company from serving on the board of another public company.

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