By Matthew Benjamin and Paul J. Lim Last week's conviction of former WorldCom CEO Bernard Ebbers--and the very real possibility that the rags-to-riches entrepreneur will spend considerable time behind bars--are expected to have a chilling effect in executive suites across corporate America.
But to members of corporate boards, a perhaps scarier event happened earlier this year. In January, a massive shareholder lawsuit arising out of Enron's bankruptcy was settled with an unprecedented twist: Ten former directors were held personally liable for the company's apocalyptic 2001 collapse, requiring them to fork over a total of $13 million out of their own pockets. A similar settlement was announced in a WorldCom shareholder lawsuit, though it was subsequently voided, and a new agreement is expected this week.
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