Review & Preview
Retirement Coup: Tenet Healthcare Corp. plans to credit Chief Executive Jeffrey Barbakow with working 20 years as of 2004 instead of the 11 he will have served, according to a company filing, an adjustment that will roughly double the guaranteed annual retirement pay Barbakow is entitled to when he leaves. The new disclosure comes as some investors say Barbakow, who earned $5.3 million in salary and bonus for the 2002 fiscal year, is already overpaid compared with his rivals. Barbakow has overseen a seven-fold rise in Santa Barbara-based Tenet’s share price since taking over in 1993.
CEO Indicted: The chief executive of San Pedro-based eConnect Inc. was indicted by a federal grand jury on charges that he tried to boost the Internet security company’s shares by releasing three bogus press releases. If found guilty, Thomas Hughes faces up to 10 years in prison for the securities fraud charge and five years for the mail fraud charge. The press releases are alleged to have falsely stated that eConnect received a $20 million investment, was beginning a stock repurchase program and had received a $964,000 order, according to the U.S. attorney’s office in Los Angeles. Questions about the company’s business practices were first raised by the Business Journal last October.
Earnings News: Semiconductor maker Semtech Corp. reported second-quarter net income of $11.1 million, compared with a net loss of $5.1 million for the like period a year ago. Revenues for the Camarillo-based semiconductor maker rose 28 percent, to $40.5 million. The company also said sales in the third quarter could drop by as much as 5 percent, leading to a sharp drop in its stock. The company said a customer claimed it suffered $42 million in damages because faulty chips caused some products to fail. Semtech said its tests indicate the chips do not malfunction. It is in talks aimed at resolving the dispute.
Northrop News: TRW Inc. reportedly was in negotiations to sell off its automotive parts business to two major private equity firms, the Blackstone Group and Carlyle Group, for $5 billion. The deal, reported by the Wall Street Journal, would be an important step for Los Angeles-based Northrop Grumman Corp., which is in the process of acquiring TRW for $7.8 billion in stock. Northrop is only interested in retaining TRW’s space and military business. Earlier, TRW agreed to sell its aeronautics business to Goodrich Corp. for $1.5 billion. Both deals would pare down TRW’s debt.
Layoff Notices: Computer Sciences Corp. is cutting 450 jobs in its Austin division, which manages computers for banks and insurers. The move by the El Segundo company follows a cut of 2,000 jobs last year amid slowing sales. The company has also asked its 66,000 workers to volunteer to take six months of leave with 20 percent of their pay.
Soda Ban: The Board of Education voted unanimously to prohibit the sale of carbonated soft drinks on the campuses of the Los Angeles Unified School District. More than 200 district schools that have individual contracts with Coca-Cola Co. or PepsiCo for either vending machines or sales in student stores will have until January 2004 to replace the soft drinks with water, juice, milk or sports drinks.
Global News: The Securities and Exchange Commission rejected a settlement proposal from Global Crossing Ltd., which filed for bankruptcy protection in January. The Wall Street Journal reported that under the offer, the company would have agreed to cease and desist fraudulent practices without denying or admitting guilt.
Preview
Labor Day: Where did it go? Summer gets its unofficial sendoff on Monday (2nd) as the nation celebrates Labor Day. For those who might have forgotten, the holiday was conceived by the nation’s labor unions and reluctantly signed into law by President Grover Cleveland amid labor unrest. While not comparable to the turbulent 1890s, major labor disputes are making headlines dockworkers, Boeing machinists and, of course, major league ballplayers are all locked up in talks.
L.A.’s Finest: Los Angeles police officers who have gone above and beyond the call of duty will be honored on Thursday (5th) as the Los Angeles Area Chamber of Commerce holds its 43rd annual Medal of Valor Awards luncheon at the Westin Bonaventure Hotel. Reception is at 11 a.m.; luncheon is at noon. Information: 213-580-7524.
Ad Awards: The Association of Independent Commercial Producers will hold its 11th annual fete to honor the best in television commercials on Wednesday (4th) at the Los Angeles County Museum of Art. Honors will be handed out in 23 categories, including humor, cinematography and visual effects as well as advertising excellence.
Downtown Opening: The Latino Museum of History, Art and Culture will celebrate the grand opening of its temporary home in the L.A. City Mall (201 South Los Angeles Street) across from City Hall on Friday (7th) from 2-4 p.m. The museum will feature an exhibit of the work of artist Ramses Noriega entitled “From Politics to Spirituality.”
Happy New Year: The Jewish high holidays begin on Friday night (6th) with the celebration of Rosh Hashanah. In a sobering sign of the times, expect stepped-up security at area synagogues.
Goooood Evening: Hitchcock fans are in luck this month as the One Colorado shopping complex in Pasadena presents several of the master’s most celebrated films, starting on Friday (6th) with 1940’s “Rebecca,” followed by “Stranger on a Train” on Saturday (7th). All screenings are free and will be shown in the One Colorado Courtyard at 8 p.m. Information: 626-564-1066.
Show Time: After four years of construction, the $190 million Cathedral of Our Lady of the Angels is officially dedicated Monday (2nd). The Mass of Dedication ceremony begins at 10 a.m. at the corner of Temple Street and Grand Avenue downtown and will be led by Cardinal Roger M. Mahony. More than 50 high-ranking Catholic Church dignitaries are expected to be on hand, as well as local elected officials, including Los Angeles Mayor James Hahn. The ceremony will be televised live on Channel 22.
