Feeds

Meg Whitman's governor bid yoked to eBay past

'Pile of potential conflicts'

Reducing security risks from open source software

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. ®

Maximizing your infrastructure through virtualization

More from The Register

next story
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
UK government officially adopts Open Document Format
Microsoft insurgency fails, earns snarky remark from UK digital services head
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.