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Chief Executive, The, April, 2002

On Target

I'm not sure whether it's just my imagination or not, but the February issue seemed to be much more on target with the CEO issues I'm interested in as a reader. There were so many "up-close-and-personal" profiles of CEOs and how they're addressing various issues that I couldn't put the issue down. Bottom line, thanks for the great work. It was very, very helpful and interesting.

Tom Eppes

President and CEO

PriceMcNabb

Charlotte, N.C.

Investment Risk in Corrupt Places

I read with interest Catherine Fredman's interview with Conoco CEO Archie Dunham ["Going Global," CE: February, 2002]. I applaud Dunham's sensitivity and commitment to the developing markets of the world. I agree with him that it takes more than simply international travel to truly understand the cultural nuances of a country.

However, while I have absolutely no doubt that Conoco has the highest ethical standards and that the corporate culture of Conoco reflects these standards, I challenge any belief that those standards can be imparted on a country such as Venezuela or Syria. It is an unfortunate fact that energy companies like Conoco must go where the oil is. This typically leads companies like Conoco to some of the most corrupt places in the world.

Countries such as Nigeria, Angola, Venezuela, Sudan and the former Russian republics are notorious for poor governance and concurrent wide-scale corruption. This of course leads to stagnant growth, high rates of poverty and the threat of political instability--not the type of things that a capital-intensive industry relishes, and risk insurance rates reflect that. Dunham's attempt to draw a line in the sand is admirable, but it will take far more to create a climate of good governance in these countries than the good intentions of one company.

William Nobrega

President

The Conrad Group

Portland, Ore.

Compensation Consequences

As a CEO and avid reader of Chief Executive since 1988, I enjoy and learn from the diverse topics covered.

In the February 2002 issue, the cover story Route to the Top" mentioned that the tenure of CEOs has become shorter. When this fact is coupled with the now-honored tradition of providing stock options as the principal compensation for CEOs (established to align the CEO's interests with those of the shareholders), this can lead to the unintended consequence of the CEO'S taking undo risk and hyping the stock for his or her personal gain at the expense of the long-term interests of the shareholders, as we have unfortunately seen in several recent instances. Compensation committees need to think of creative fixes to this problem.

To John Brandt's February editorial, "The Impatient CEO," I would add that there are times the CEO needs to be very patient.

Robert J. Metzger

President and CEO

Bernards Inc.

High Point, N.C.