Who ever thought I would write about Worldcom as a good business example? Not me. But according to this, WorldCom (now MCI) is cleaning up.
The company will limit executive compensation, insist that all board members aside from the CEO be independent and will set aside 25% of profits to plow back to shareholders in the form of dividends. New York Stock Exchange standards, by contrast, require only that a majority of the board be independent.
WorldCom will offer no short-term earnings projections, so executives will have less incentive to fudge accounting in order to meet those projections.
In other words, they are finally going to do what they should have been doing all along. It's nice to see a group of executives who get it.
Decisions should always be made by asking what is best for shareholders, and what is best for customers? Too often the only question asked is "what is best for upper management?"