Feeds

Meg Whitman's governor bid yoked to eBay past

'Pile of potential conflicts'

Choosing a cloud hosting partner with confidence

As CEO of eBay, Meg Whitman steered millions of dollars into the coffers of Goldman Sachs. Over the same period, she profited handsomely from the investment firm, receiving an estimated $475,000 and coveted insider access to initial public offerings for a little more than a year's worth of of part-time service.

The cushy relationship could create conflicts of interest should Whitman win her bid to become California's next governor, according to an investigation published by California Watch. As underwriter to more than 2 percent of the California bonds issued over the past five years, it is second only to Merrill Lynch in underwriting state bonds.

With Goldman such a major player, Whitman would face "a pile of potential conflicts of interest" if she becomes governor, Doug Heller, spokesman for Consumer Watchdog of Santa Monica, told the news outlet, which is a project of the Center for Investigative Reporting.

Wall Street critics also say Whitman's dealings with firm call into question her judgment. While on Goldman board of director's compensation committee it twice signed off on big bonus packages for then CEO Henry Paulson, including a 2001 bonus package of $11.5m, more than 19 times his salary.

Whitman was among 21 business executives who in 2002 were identified by US Representative Michael Oxley of Ohio as receiving lucrative IPO shares from Goldman and two other firms in exchange for giving them bond business. Whitman and other execs eventually paid $3m to settle shareholder lawsuits that claimed that the proceeds should have gone to eBay.

Whitman's campaign attorney said the conflict concerns were overblown and that if elected she would dump her Goldman stock and put the rest of her portfolio into a blind trust.

Much more from California Watch is here. ®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.