Nacchio verdict renews focus on ethics
By Mike Cote, ColoradoBiz Magazine
Thursday, April 26, 2007
Joe Nacchio probably wouldn't have been prosecuted by the
federal government had he stopped trading shares of Qwest when
it became clear to company executives that its 2001 earnings
projections were unrealistic.
A University of Denver professor suggests CEOs will always have
an inside edge, no matter how much information their companies
"I'm just wondering if executives should sell any stock at the
time that they are at the head of a company," says Kevin
O'Brien, a DU associate professor specializing in corporate
governance issuesat the Daniels College of Business. "They
should wait until after they leave."
Nacchio, 57, was convicted Thursday on 19 counts of insider
trading involving shares with gross proceeds of about $52
million. The ex-CEO of Qwest faces up to 10 years in prison and
a minimum of more than $71 million in fines and forfeitures.