Wednesday, November 29, 2006

Strange Coelho Connection

Just before Thanksgiving ex-Democratic Minority Whip Tony Coelho played turkey in several stories. USA Today nailed him for receiving stock options dated 3 years prior to his becoming a board member of Cyberonics.

Across the pond, the Telegraph quoted Tony in a piece suggesting Republicans will turn into attack dogs with the new House Speaker, Nancy Pelosi. Mr. Coelho himself resigned in 1989 amid allegations he received preferential treatment in a junk bond deal. Why would a discredited ex-Democratic leader be asked to comment in such a story?

The Telegraph likely had no idea of Tony’s role in the stock option manipulation as the story ran two days after theirs. It noted:

Coelho's first options at Cyberonics, dated April 14, 1994, entitled him to buy 20,000 shares of company stock at a 32% discount to the stock's market price on the grant date, according to a Form 3 stock ownership record he filed later with the SEC. Cyberonics' maximum discount on options it issued at the time was 15%, according to the company's stock-option plan filed separately with the SEC that October.

Recall that extrinsic motivators or pay for performance drive both No Child Left Behind and No CEO Left Uncompensated. Does it also ensure No Legislator Left Uncorrupted?

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