TSC's 10 Most Wanted on Wall Street

	Of 70 publicly traded companies in Silicon Valley with active loans to executives, what percentage, according to The San Jose Mercury News, forgave at least part of a loan?

he court of public opinion cries for more than 10 defendants.

Yes, after publishing a list of the Ten Most Wanted on Wall Street, we at TheStreet.com conclude that we've only skimmed the surface of a deep reservoir of ill will harbored toward the financial world's reputed rogues.

We asked you whether our 10-person list sufficiently exposed the Desperadoes of the Dow, the Nasties of the Nasdaq and other Fiends of Finance. Your answer? A deafening "No!"

"More, more, more!" you bellowed. Nearly every email we received on the subject suggested a new candidate for our Most Wanted list; few correspondents pleaded for clemency toward the people already marked by our attention.

Many of you shouting for movement in the punitive direction got your wish Wednesday. Douglas Faneuil, a Merrill Lynch employee seen as crucial to the investigation of alleged insider stock sales at ImClone, was in a cooperative mood at court Wednesday. Former Enron financial guru Andrew Fastow was charged with fraud. And members of the Rigas family that once ran Adelphia Communications were arraigned.

Despite these developments, the thirst for justice on Wall Street is far from quenched.

In the interests of continuing our mission, we've grouped the additional nominees for our Most Wanted List into a few broad categories. Weep if you must, but don't let your tears blind you on your path to the jury pool. Vote for your (least) favorite.

Alarm Bells Gary Winnick Global Crossing Mike Armstrong AT&T John Chambers Cisco The dominant theme running through your letters? The telecom business, that tattered sector that has vaporized trillions of dollars in market capitalization over the past two years or so. Topping the list of this set of suspects is Gary Winnick, ex-CEO of now-bankrupt fiber optic capacity swapper Global Crossing. Winnick, who got out of the company's stock when the going was good, made more than $700 million in stock sales. Meanwhile, unhappy investors saw the company's market cap plunge from $45 billion in early 2000 to 45 cents, more or less, in Global Crossing's post-bankruptcy incarnation. The fact that Winnick now proposes to sweep a few crumbs from his lavishly set table into Global Crossing 401(k) holders' accounts hardly makes the disparity less jarring. Yes, our first list included Qwest (Q Quote) ex-CEO Joseph Nacchio, but some wonder whether the more appropriate target would have been onetime Qwest Chairman Philip Anschutz. "Was he the puppeteer behind Nacchio or was he among those duped by Nacchio?" asks one correspondent. So far, he seems in the clear; congressional investigators decided last month that when Anschutz sold more than $200 million in stock in mid-2001, he didn't base the sale on insider knowledge. Or maybe we should round up a posse to track down Mike Armstrong, chairman and CEO of the ostensibly safe financial haven for widows and orphans, AT&T (T Quote). Armstrong committed the classic financial strategy of buying high (cable television operators, that is) and selling low. The most shameful part of Armstrong's tenure, writes one correspondent, is that AT&T shareholders were hardly telecom gamblers. Rather, they're "trusting people who think they are buying a conservative company that has always paid a reasonable dividend and will continue to do so!" Or maybe the top telecom target is acquisition-crazed Cisco (CSCO Quote) CEO John Chambers, recipient of 15 million options over the past three years. "John was on a buying spree for most of the '90s," writes one critic, "paying exuberant amounts of money for companies that had little or no value whatsoever." Bad strategy. Banks Were Open Gary Wendt/Steve Hilbert Conseco Henry Blodget, Merrill Lynch Mary Meeker, Morgan Stanley Sandy Weill, Citigroup David Komansky, Merrill Lynch What on earth possessed us, asked several readers, to ignore the contributions, so to speak, of Conseco executives: founding CEO Steve Hilbert and his successor, ex-General Electric (GE Quote) whiz adult Gary Wendt. Hilbert all but dug a grave for Conseco by spending $7 billion on mobile home lender Green Tree Financial; Wendt fell into the hole while claiming he was actually digging for gold. Though we placed Salomon Smith Barney's telecom tout Jack Grubman in our original lineup, others wanted to see more sell-side analysts -- the carnival barkers who calmly, methodically -- and sometimes, allegedly, in contradiction of the spirit of internal company emails -- led faithful flocks to the rocky territory of Internet stocks and other froth. Morgan Stanley's (MWD Quote) Mary Meeker and Merrill Lynch's (MER Quote) Henry Blodget were the crowd favorites here. Others suggested we should have gone farther up the food chain as we went after Wall Street's Wrongdoers. One nominee: Merrill CEO David Komansky, the man at or near the helm at the time of Merrill's ill-fated involvement with Long Term Capital Management, the Internet stock bubble and Enron's Nigerian barge deal. "Put that on your resume and try and get another job," writes one correspondent. Back at Salomon Smith Barney, some asked why we stopped with Grubman. Why not lay blame at the feet of Sandy Weill, chief architect of the carefully assembled Citigroup (C Quote), the one-stop financial shop where telecom executives could raise capital for their companies and get in on hot IPOs without having to hang up and redial? Weill "absolutely, totally destroyed a lifetime's reputation in 12 months," says the same reader. Good Governance? The Bush-Cheney Crowd The Clinton-Gore Crowd The Lay-Skilling Crowd The Breathless Media Crowd Yet another bumper crop of additional suspects hails from a single geographical area: Washington, D.C. If we went after Senate Democrat Joe Lieberman for his business-knows-best attitude, why not attack former House Republican Newt Gingrich for his deregulatory bent? Dereg-happy Republican Texas Senator Phil Gramm and his wife Wendy Gramm, onetime Enron board member? Democratic National Committee Chairman Terry McAuliffe, $18 million richer from a 1999 sale of Global Crossing stock? Of course, there's always former Halliburton (HAL Quote) head Dick Cheney, Harken Energy (HEC Quote) board member George W. Bush, poisoner of the nation's values Bill Clinton and Internet inventor Al Gore. It goes on and on. Yet there's bipartisan support for one candidate: Fed chairman Alan Greenspan. Once a beloved figure for his perceived orchestration of the American economy's crescendo, Greenspan is now derided for his failure to see it for the bubble it was, and his recently professed inability to have done anything about it. "I'm just a &%$#@*$ software engineer and I saw it way back in 1998," writes one Greenspan nominator. "Why the hell couldn't he?" But the nominations continue. From Enron, readers ask, why not ex-CEO Jeff Skilling? Where were the Andersen accountants? Why not the Rigas family that formerly controlled Adelphia Communications (ADELQ Quote)? Accuses one writer, "If ever there was a family that treated shareholders' assets as their very own, they did it in spades." And, oh yeah. We almost forgot. Where are the journalists? readers asked. You know -- the talking heads whose coverage of a bubbly market was, in hindsight, insufficiently critical. Maria Bartiromo. Lou Dobbs. Louis Rukeyser. Plus some guy named Jim Cramer. Summing up the response to our story, we find we have the reverse of John F. Kennedy's reported aphorism, "Success has many fathers, but failure is an orphan." It seems that as people pursue the paternity of our Wall Street woes, there's an endless line of suspects.

	The 10 Most Wanted Compensation Quiz

1. GE: We Bring Good Things to Jack Welch In mid-September, General Electric retiree Jack Welch renounced a number of nontraditional perquisites he'd been granted in recognition of his ex-chief executive privilege. According to documents Welch's wife filed in the couple's divorce case -- papers subsequently posted on The Smoking Gun -- which of the following items was not fully covered in his original retirement package? a. Telecom technician service in two offices and five residences. b. Initiation and dues at three country clubs. c. Doctors, medical supplies, prescriptions, treatments, tests and vitamins for Mr. and Mrs. Welch. d. Car insurance for a 1999 Mercedes Benz, a 1981 Mercedes Benz, a 1996 Jeep, a 1989 Jeep and a 1996 Lexus. Click for the answer! 2. We're Out of the Money! Ex-Tyco International CEO Dennis Kozlowski has been accused of numerous misdeeds, such as taking out at least $225 million in unauthorized loans from Tyco, attempting to erase $25 million of those loans, and receiving $58 million in unauthorized bonuses. Here's another number to chew on: How much of Tyco's market capitalization has been erased since 2000's close? a. $10 billion b. $25 billion c. $45 billion d. $70 billion Click for the answer! 3. Well, That's a Relief! Who said, "Nobody believed [my company's stock] was overpriced. If I did, I would have been selling a lot more"? a. Dennis Kozlowski / Tyco International b. Naveen Jain / InfoSpace c. Bill Gates / Microsoft d. Gary Winnick / Global Crossing Click for the answer! 4. To Forgive Is Divine Of 70 publicly traded companies in Silicon Valley with active loans to executives, what percentage, according to The San Jose Mercury News, forgave at least part of a loan? a. 10% b. 20% c. 40% d. 80% Click for the answer! 5. Keep Your Options Open Which of these choices is not an excerpt from "Stock options for undiversified executives," a paper by Brian J. Hall and Kevin J. Murphy, published in Journal of Accounting and Economics, February 2002? a. "While the reported level of total compensation for S&P 500 executives has risen modestly ... the growth in 'risk-adjusted pay' has been relatively dramatic, suggesting that executive value has increased far more than company cost." b. "The analysis does suggest a puzzle -- widespread use of options when, at least in many cases, restricted stock appears to be the outcome of efficient bargaining." c. "Laying options on top of existing competitive pay packages results in systematically overpaid executives, lower company profits, and inefficiently provided incentives." d. "Broad-based stock option plans extending to all company employees ... are, in fact, an unusually expensive and therefore inefficient way to convey compensation to executives and employees." Click for the answer! 6. Home Sweet Home You've probably heard all about the $445 pincushion, the $6,000 shower curtain and the $15,000 dog umbrella stand that were among the "appointments and furnishings lacking any legitimate business justification" that Tyco's Kozlowski used to decorate his company-financed New York apartment, according to Tyco International. But, hey, it takes more than a pincushion to make a place feel comfy. Which of the following entries does Tyco not allege was on Kozlowski's decorating bill? a. An $860 pair of oven mitts. b. A $2,200 wastebasket. c. $2,900 worth of coat hangers. d. Bed sheets at $2,980 a set. Click for the answer! 7. Joey Qwest Former Qwest CEO Joe Nacchio netted $232.5 million in company stock sales from 1999 to 2001, calculates the Rocky Mountain News. The company's market capitalization now stands at $4.4 billion. What was the telephone company's market cap in December 2000? a. $23 billion b. $46 billion c. $68 billion d. $102 billion Click for the answer! 8. And You Thought a Company Helicopter Was a Frivolous Perk "I got a resume from a person who listed flying a helicopter as his outside interest. Since I am also a helicopter pilot, I took him out in my helicopter and gave him the controls. He took the controls, and I realized that he didn't know what he was doing. I took the controls back from him. We landed safely, and I terminated the interview." Who said that? a. Donald Trump / Trump Hotels & Casino Resorts b. Dennis Kozlowski / Tyco International c. Bernie Ebbers / WorldCom d. Warren Buffett / Berkshire Hathaway Click for the answer! 9. Weekend at Bernie's Finally, some WorldCom numbers to sort out. The company estimates it overstated earnings before interest, taxes, depreciation and amortization by more than $7 billion since 1999. Former CEO Bernie Ebbers owed WorldCom $408 million as of the end of May. What's the current market capitalization of WorldCom and its MCI Group? a. $217 million b. $317 million c. $417 million d. $517 million Click for the answer! Click here to see answers to all the questions.

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