By Barbara Morgan, 6 October 1999 13:13
NEWS The latest predictions for this Friday's Nasdaq flotation of Internet grocery start-up Webvan have put the firm's market capitalisation at $4.1bn. If realised, that would give George Shaheen - ex-Andersen Consulting CEO, now Webvan chief - an estimated $200m worth of stock. According to company documents, Shaheen's contract includes shares for 5 per cent of the company in addition to a $500,000 annual salary. Shaheen is not alone in moving from the board of a large corporate to a Net start-up though. Executives from AT&T, Black and Decker and Federal Express have all joined e-businesses recently. Meg Whitman left toy maker Hasbro 18 months ago to run eBay, and now has options worth in excess of $900m. Jeffrey Calannio, chief executive at the US's Strategic Placement Group, said: "The biggest incentive for executives is the stock play." According to Ann Jamieson, managing director of PriceJamieson, the trend will soon hit the UK. She said that now Internet companies are offering stock to British management, there will inevitably be defections. "We will start to see more very senior people moving over from 'bricks and mortar' within the next six months."
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