Celeb Directors Continue to Ride Hollinger Gravy-Train

28 September 2005

Despite their complacent inaction across the years that Lord Conrad Black and his lieutenants looted shareholders' cash from Hollinger International [H-Intl], a small number of influential independent directors such as Henry Kissinger, Richard Perle and former Illinois governor James Thompson continue their lucrative sojourn on the company's board.

Thompson and Kissinger, in particular, figure among a group of current and past H-Intl directors who agreed in May to pay $50 million (€42m; £28m) in settlement of a shareholder lawsuit contending they failed to perform their duties.

Incredibly, this neglectful trio each continues to receive a flat fee of $50,000 annually plus an additional $3,000 every time they place their posteriors around the boardroom table.

Of even greater surprise is that a shareholder revolt has only now begun to foment."I am unhappy with this board as it is presently constituted," says Cardinal Capital Management partner Eugene Fox III. "It's past time for the old guard to go."

CCM subsidiary Cardinal Value Equity Partners is one of the litigants that sued current and former H-Intl directors for breaching their fiduciary duties.

Data sourced from International Herald Tribune Online; additional content by WARC staff