Treasury Chief to Keep $100 Million Alcoa Stake
NEW YORK Treasury Secretary Paul O'Neill has decided to
keep about $100 million in Alcoa stock and options, giving him
perhaps the largest single-company holding that a top government
official has ever held.
Mr. O'Neill's decision, which was stated in a letter to a
government ethics official in January and reiterated in a television
interview Sunday, stands in contrast to moves by other
government officials in recent years who diversified their
investments upon taking office.
On Monday, Vice President Dick Cheney said he would donate
to charity the profits from his remaining stock options in
Halliburton, the oil-services giant. Mr. O'Neill was chairman or
chief executive of Alcoa, the large aluminum maker, from 1987
until late last year.
Mr. O'Neill has said he will recuse himself from all Treasury
decisions concerning Alcoa. Appearing on an NBC News
program, Mr. O'Neill said he had received clearance from
government ethics experts to keep the shares.
But some government and corporate analysts said that Mr.
O'Neill's decision raised a host of potential problems. Alcoa, with
$22.9 billion in revenue last year, sells its products around the
world and is directly affected by many trade regulations. It also
has many customers in highly regulated industries like aerospace
and railroads.
"It's an inherent conflict of interest," said Judith Fischer, publisher
of Executive Compensation Reports, a newsletter. "It's also a
distraction."
Charles Lewis, executive director of the Center for Public
Integrity, a nonpartisan research group in Washington, added,
"Everyone at Treasury and everyone in the Bush administration will
know 'Alcoa' is the Treasury secretary. That does raise some
issues."
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