WASHINGTON -- The target list of America's least valuable directors has been released by the International Brotherhood of Teamsters.
Robert Stone, former chairman and now a director at Kirby Corp., Tandem Computers Inc. and NovaCare Inc., topped the list for serving on boards that overpay the chief executives of underperforming companies.
Other directors who were named "least valuable" are:
William Harrison, on the boards of Freeport-McMoran Inc., Dillard Department Stores Inc. and Chase Manhattan Corp; Jack Messman, Novell Inc., Cambridge Technology Partners Inc., Safeguard Scientifics Inc., USData Corp., UP Resources Group and Tandy Corp.; Gareth Chang, Apple Computer Inc. and Mallinckrodt Group Inc.; David Li, Bank of East Asia Ltd., Campbell Soup Co., Dow Jones & Co., Hong Kong Telecomm Ltd., S. China Morning Post Holdings, Sine Darby Hong Kong Ltd., Hong Kong & China Gas Co. Ltd. and Westinghouse Electric Corp; Rand Araskog, Alcatel Alsthom, Dow Jones, ITT Corp., ITT Hartford Group Inc., ITT Educational Services, Rayonier Inc. and Shell Oil Co. Inc.; John Brademas, Loews Corp., NYNEX Corp. and Texaco Inc.; Jerry Dempsey, Navistar International Corp., PPG Industries and Chemical Waste Management Inc.; and Thomas Murphy, Johnson & Johnson Inc., Texaco and Walt Disney Co.
The directors were selected through a point system, said Joe Horgan, who helped compile the list. Directors, except chief executives, were given 15 points for being on a board identified by compensation consultant Graef Crystal that awarded the CEO a salary higher than the going rate for chief executives at similarly sized companies. Mr. Crystal's information came from 1997 proxy statements.
Points also were awarded for being directors at five companies Business Week claimed had executives whose companies performed poorest relative to their pay; and companies on the Council of Institutional Investors' 1997 focus list of poorly performing companies. Other no-nos that resulted in points: directors who were consultants for a company while also serving on its board; directors with conflicts; and directors who served on more than four boards.