Remora

CEO Time

The adulation of the CEO, one of the more puzzling cultural features of the nineties, is turning, predictably, into revulsion. Since Limited Inc has always maintained that most CEOs could easily be replaced by much cheaper computer programs (with the multiple advantages accruing from having a thing at the top that won't borrow money, buy glitzy spreads, aquire trophy girlfriends or wives, or give bogus leadership tips to the young exec crowd), revulsion has always seemed about the right emotional stance to take towards this set. Forbes now has a nice section, CEO Strikeout, targetting these formerly flattered non-entities (although Limited Inc must say that the Strikeout mcguffin, which requires telling the story of a rise and fall by way of balls, strikes, fouls, and, presumably, hits, is a funny idea that should be used once, and then trashed). Today's Bad boy is the CEO of World Comm, Bernard Ebbers. World Comm has been dodging rumors that its accounting structure is creative. Ah, creative, the magic word. Here's the last graf:

"The Next Pitch: WorldCom reports its fourth-quarter earnings tomorrow. If they are reassuring, this stock will be due for a snapback--especially if the report helps Ebbers put to rest some of the rumors dogging his firm. But that snapback, if it comes, may do little more than boost WorldCom back up over the $10 level. And the stock's main appeal--as an acquisition play--could be fading. Today The New York Times reported that the most likely acquirers, SBC Communications and Verizon Communications, have lost interest, due to concerns about the challenges facing the long-distance businesses. The Bells also were said to be nervous about WorldCom's possibly aggressive accounting practices. WorldCom stoutly denies that it has any accounting "issues." But if tomorrow's earnings report fails to clear the air and provide the hoped-for bounce, Ebbers will find himself under increasing pressure to use his deal-making skills to arrange one last merger--one that inevitably would leave WorldCom in the hands of some other CEO."

The Net Economy has a more up close and personal view of Ebbers. They get in his sock drawer, rummage through his underwear, check out his check book, and guess what? It is one of those check books with a calendar, and today Ebbers has written down, guess I'll have to find that $150 million to pay off my loan. Well, since Ebbers is such a neat guy, his company will probably pitch in, like they've done before. Here's the first two grafs:

"It must be nice to be able to look at $180 million as if it's a dirty penny on the street, hardly worth bending over to pick up. That's how some analysts seem to view WorldCom CEO Bernie Ebbers' $183-million loan that came due this week.

Ebbers had until the end of the day Thursday to pay back the loan from Bank of America, which he secured last year using 11.3 million shares of WorldCom stock. The loan was called because WorldCom's stock price dropped below $10 a share Wednesday. WorldCom is expected to pay off the loan, just as it did in 2000, when it anted up $150 million to cover another of Ebber's debts."

Meritocracy, man. What a wonderful system.