• Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint
Share this Page URL
Help

Chapter 5. Caffeine Badly Needed: Sleepy... > Red Flag 10: Cross-Board Memberships...

Red Flag 10: Cross-Board Memberships Can Lead to Conflicts of Interest

When CEOs and other directors at two companies have cross membership, it can create perceptions of a conflict of interest, especially if the companies have any kind of business ties. An example was the presence of AT&T Corp. CEO Michael Armstrong on the board of Citigroup while the banking giant’s CEO Sandy Weill was on the AT&T board. New York Attorney General Eliot Spitzer and other regulators looked into whether Weill leant on Jack Grubman, who was the star telecommunications analyst at Citigroup’s Salomon Smith Barney investment banking and brokerage unit, to change his recommendation on AT&T to a “buy” in 1999.


PREVIEW

                                                                          

Not a subscriber?

Start A Free Trial


  
  • Creative Edge
  • Create BookmarkCreate Bookmark
  • Create Note or TagCreate Note or Tag
  • PrintPrint