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  #1  
Old August 13th, 2002, 06:25 PM
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3 Indians in Fortune's Greedy Bunch

3 Indians in Fortune's Greedy Bunch


WASHINGTON: Three Indian-American hi-tech executives have been named in an unsavoury list of 25 corporate pashas who cashed in on the hi-tech bubble of the 1990s and became multi-millionaires even as their companies went into a tailspin and pauperised many investors.


I2 Technologies Sanjiv Sidhu, Sycamore Networks' Desh Deshpande, and Infospace Naveen Jain make what Fortune calls the "Greedy Bunch" list of tech tycoons. The list also includes tech luminaries such as AOL Time Warner’s Steve Case, Cisco Systems’ John Chambers, and AT&T’s John Malone.


"They got rich because they were able to take advantage of the bubble to cash in hundreds of millions of dollars' worth of stock -- stock that was usually handed to them via risk-free options -- at vastly inflated prices," Fortune wrote in a scathing commentary that accompanied the dubious honours roll. "When the bubble burst, their shareholders were left holding the bag. But, hey, they had theirs."


Topping the list of corporate cherry pickers are Qwest Communications’ Philip Anschutz and Broadcom’s Henri Samueli, both of whom sold stock worth more than $2 billion each when their companies were flying high.


Sidhu, who founded I2 Technologies, sold stock worth $1.03 billion and ranks seventh in the list. Sycamore’s Deshpande comes in 15th after raking in $726 million, and Infospace’s Naveen Jain is 19th after skimming $541 million.


At its peak, Sycamore traded at more than $300 a share, I2 at more than $200, and Infospace at more than $100. They now trade at around $3, 75 cents and 50 cents respectively.


While some executives have argued that they were well within their right to take some money off the table and they cannot be blamed for the tech mania that pumped up their companies to such absurd valuation, Fortune does not take a charitable view of the explanation.


"For an ordinary investor, it is nearly impossible to look at this list and not feel ripped off. In some cases insiders clearly cheated the investment community to realise their gains -- by ginning up revenue numbers that have turned out to be phony," the magazine wrote.


"But even putting those cases aside, the billions of dollars of insider sales make absurd many of the rationales executives used to justify their new wealth. Take, for instance, the notion that executives were being rewarded for performance. Plainly, the executives on this list did not perform. They failed miserably; in many cases they failed even as they were bragging about how well they were doing and how much their stock would rise," it said.


By Fortune's estimate, executives and directors of the 1,035 corporations it examined took out roughly $66 billion during the bubble years. Of that amount, a total haul of $23 billion went to 466 insiders at the 25 corporations where the executives cashed out the most.


The magazine looked at companies that had hit a market cap of at least $400 million -- and fallen by at least 75 per cent from the highs they reached during the bubble years. Only stock sales from 1999 were counted.


"What really took place was a breach of faith, with the insiders in effect betraying their shareholders by making sure that they themselves wound up rich no matter how badly things turned out for their companies or their investors," the magazine said.


"For too many executives, the easy riches to be made were hugely tempting, and the moral (and sometimes legal) niceties easily ignored. All too often, the people who ran the companies that were the darlings of the bull market saw nothing wrong with taking a seat at the casino, selling high, and cashing out their chips. To put it another way, they got greedy," it added.

Rank Company Total sold Top seller
-----------------------------------------------------------
1. Qwest Communications $2.26 billion Philip Anschutz
2. BroadCom $2.08 billion Henry Samueli
3. AOL Time Warner $1.79 billion Steve Case
4. Gateway $1.27 billion Ted Waitt
5. Ariba $1.24 billion Rob Desantis
6. JDS Uniphase $1.15 billion Kevin Kalkhoven
7. i2 Technologies $1.03 billion Sanjiv Sidhu
8. Sun Microsystems $1.03 billion Bill Joy
9. Enron $994 million Lou Pai
10.Global Crossing $951 million Gary Winnick


http://timesofindia.indiatimes.com/a...artid=18949863
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Last edited by echarcha; August 13th, 2002 at 06:29 PM.
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  #2  
Old August 13th, 2002, 06:47 PM
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Thumbs down

I dont think Sanjiv Sidhu can be *EVER* called greedy .....He is extremely humble (From what I heard from my cousin) and most of his earnings are used by his wife in Social Welfare back home in India
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Old August 14th, 2002, 11:32 AM
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I have not heard

a single bad thing like corporate scams by any of the Indians mentioned on this list.

TOI is a classic pinko liberal rag which wishes to term successful entrepreneurs as 'greedy'

These men took advantage of the situation and made money. They did not cheat anyone like WorldCom or Enron!

Why do we have this mentality in India that if someone makes money then he/she is either a crook or greedy?

TOI sucks!!
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Old August 14th, 2002, 11:52 AM
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Whatever... at least we have a few indians in the list. That's enough to make my day.
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Old August 14th, 2002, 11:58 AM
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Did u know that Desh Deshpande and Narayan Murthy of Infosys are brothers? Their wives are sisters.

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Old August 14th, 2002, 12:01 PM
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Deshpande is a maharashtrian surname. Murthy is south indian. Wot are you saying, chingaree?
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Old August 14th, 2002, 12:15 PM
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Re: I have not heard

Quote:
Originally posted by echarcha
TOI is a classic pinko liberal rag which wishes to term successful entrepreneurs as 'greedy'
Charpai.... The list has been compiled by Fortune and not TOI
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Old August 14th, 2002, 12:29 PM
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Re: Re: I have not heard

Quote:
Originally posted by nydood

Charpai.... The list has been compiled by Fortune and not TOI
Yes but the title of GREEDY was conjured up by TOI
They could have said that 3 Indians in World's Top richest who made money in stocks, etc.
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Old August 14th, 2002, 12:30 PM
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I aint a fan of TOI But..

http://www.fortune.com/insiders/qwest.html
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Old August 14th, 2002, 12:32 PM
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But thats the exact same title Fortune has in its cover story. I dont see anything wrong done by TOI.
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Old August 14th, 2002, 01:10 PM
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Talking

Quote:
Originally posted by nydood
But thats the exact same title Fortune has in its cover story. I dont see anything wrong done by TOI.
chup bay... charcha pai nay bola TOI haraami hai, toh woh hai. terey ko site say ban hona hai kya??

(kharcha pai... joke yaar joke )
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Old August 14th, 2002, 01:18 PM
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Talking

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