Troubled Global Pays Chief's $8.8 Million Tax Bill
April 11 (The Daily Telegraph London) - Global Crossing, the troubled telecoms company, is to pay an $8.8m (pounds 6.2m) tax bill for its chief executive, even as creditors scramble to salvage assets from one of the worst ever business collapses.
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The payment to John Legere must first be approved by a New York court that is overseeing Global's attempt to emerge from bankruptcy protection.
It is understood that investors have approved the deal, however, in return for securing a cut in the chief executive's salary and gaining approval over his future bonuses.
Mr Legere's pay has been a subject of controversy ever since he took the top job, moving from running Global's Asian arm.
He received a $3.5m signing on fee and was forgiven $10m in company loans - payments he argues were needed to compensate him for stock options he gave up at Dell, his previous employer.
The near $9m tax bill payment was revealed on the day Global said it would take a write-down of $8 billion, reflecting the plunge in the value of many of its assets.
Global filed for bankruptcy protection last year with debts of $12 billion - the telecom industry's most spectacular collapse.
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