Board Betrayal: The Weirton Steel Story: Failed Governance and Management Hand in Hand with Arthur Andersen: An Esop Fable

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Description

In 1983 the employees of Weirton Steel voted to take a 20% pay cut to avoid wasting their jobs. Through an Employee Stock Ownership Plan, they purchased the unwell company. Full of hope and confidence, the employees believed their sacrifices would in the end protected their future.

Today Weirton’s stock is practically worthless, thousands of jobs have been eliminated, and the corporate’s officers and directors have been subject to more than one lawsuits. As members of top management made personal fortunes, the worker owners watched their net worth erode year after year. Long before Arthur Andersen’s incompetence was legendary, the firm’s auditors helped Weirton Steel’s management waste millions of the worker owners’ value.

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