Embattled WorldCom, Inc. today announced the majority of its Board members have offered their resignation to new Ch...
December 17, 2002
Embattled WorldCom, Inc. today announced the majority of its Board members have offered their resignation to new Chairman and CEO Michael Capellas and he has accepted.
Departing Board members include Carl Aycock, Max Bobbitt, Franceso Galesi, Gordon Macklin, Bert Roberts, Jr. and John Sidgmore. Judith Areen resigned from WorldCom’s Board last week.
Only recently appointed Board members will remain, including Nicholas Katzenbach, former U.S. Attorney General, Dennis Beresford, former chairman of the Financial Accounting Standards Board, and C.B. Rogers, Jr., former chairman and CEO of Equifax.
“With the courts’ approval yesterday of Michael Capellas as WorldCom’s new chairman and CEO, it is now appropriate for each of us to stand down as directors and give him the opportunity to continue the process we have started to put in place substantive reforms and best governance practices,” said the departing Board members.
At yesterday’s hearing, U.S. District Court Judge Jed S. Rakoff complimented the existing WorldCom Board of Directors for making a series of positive reforms to the Company’s governance, and for mandating strong and consistent cooperation with all government investigations and the District Court’s monitoring process.
“I appreciate the Board’s hard work over the past months in laying the groundwork for good corporate governance going forward, including the appointment of three new Board members,” said Capellas. “These actions show that WorldCom is absolutely committed to establishing the highest standards of ethics and integrity at all levels throughout the organization.”