Editor's note: This is the fifth installment of a series examining the investment holdings and affiliations of the likely 2008 presidential candidates. Click
Blockbuster CriticismLast year, Glass Lewis advised Blockbuster shareholders to withhold board-election votes for Clegg due to the company's shoddy record on accounting controls. In 2005, a year in which Blockbuster improved its grade on compensation policies to a C, Clegg no longer held a seat on the compensation committee. Its board of directors was re-worked after the company split off from Viacom ( VIA) and billionaire investor Carl Icahn waged a proxy fight against the company. Clegg remained on Blockbuster's audit committee, a position she has held since she joined the board in 2003. Blockbuster disclosed in early 2006 that it restated its financial statements for 2004 and the first three quarters of 2005 for a variety of reasons. It also said it failed to maintain proper control over its financial reporting practices in 2004. "We believe the restatement and material weaknesses may signal weak internal accounting expertise, poor internal controls and aggressive financial reporting practices at the company," said Glass Lewis in a report. The firm singled out members of the company's audit committee for having failed in their responsibilities. Any shortcomings from Clegg may have stemmed from her workload, Glass Lewis suggested. That year, she collected director's fees of an undisclosed amount from four public companies -- Blockbuster, Cardiome Pharma ( CRME), CBOT Holdings and Javelin Pharmaceuticals She also disclosed owning between $100,001 and $250,000 worth of shares in Brookdale Senior Living ( BKD), where she has been a director since 2005. "We believe that the time commitment required by service on this many audit committees may preclude Ms. Clegg from dedicating the time and attention required to fulfill her duty" to shareholders, said Glass Lewis in its report.
Big Wall Street DonorsThe
"Any company that is excessively worried about this legislation obviously has something to be worried about," says Paul Hodgson, a compensation expert with The Corporate Library. "It is odd that Senator Dodd has been critical of excessive executive compensation while his wife has a questionable history in that area, but he is running for president -- not his wife."