By Aled Herbert, 2 May 2002 08:30
NEWS Bernie Ebbers, former CEO of WorldCom who resigned this week, is to stay on at the troubled telco as chairman emeritus. Co-founder Ebbers, who led the company for almost 20 years, will keep an office at the company and also hold a consulting role at the company. He will also keep receiving interest rate subsidies on a personal loan which could be worth around $100m over the next five years, despite the precarious financial situation of the company. WorldCom is currently staring bankruptcy in the face. The loan is likely to cause contention with the WorldCom board, reports the Financial Times. The company's latest CEO yesterday announced a widespread internal shake-up just one day after taking over the reins. John Sidgmore told analysts during a conference call yesterday that he is considering a "total restructuring" of the company to get it back on its feet. Ebbers resigned on Monday.
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