For Immediate Release, 8/20/2002 

Sanders: CEOs Must Return Illegal Earnings

Rep. Bernie Sanders pointed to an article in the New York Times today, as further reason to force CEOs to return illegal earnings they have taken from companies that have misstated their earnings. Sanders said, "At WorldCom, where profits were overstated by $3.8 billion, 17,000 jobs have been lost. Their accounting fraud has cost shareholders some $150 billion, including billions in lost pension assets. Meanwhile, former WorldCom CEO Bernard Ebbers received personal loans from the company of more than $408 million that he still has not paid back."

Sanders continued, "The 'greed culture' in the United States today is almost beyond belief. CEOs of major corporations now make over 500 times what their employees earn. In addition, they receive bonuses, golden parachutes, stock options, lavish retirement plans, and a wide range of other very generous benefits. In addition, John Sidgmore, the current WorldCom CEO, has sold more than $87 million of WorldCom stock since 1997. Scott Sullivan, the former WorldCom Chief Financial Officer, has sold more than $45 million in WorldCom stock since 1995. If you add it up, just 5 people at WorldCom received over $600 million in loans, compensation, and stock over the past few years. Should these people be allowed to keep this money while former employees of WorldCom, who had nothing to do with the corruption at WorldCom, are still out of work trying to make ends meet?"