Former New York City Mayor Rudolph Giuliani said he is committed to help turn around WorldCom because WorldCom represents the "biggest challenge" in returning investor confidence in the capital markets.
Mr. Giuliani is chairman and CEO of Giuliani Partners, a New York City consulting firm that formed a strategic alliance with Ernst & Young earlier this year. He made his commitment to WorldCom known at a press conference held to announce that the National Thoroughbred Racing Association has hired Giuliani Partners to review the industry's electronic wagering system.
WorldCom has said it plans a $9 billion restatement because of accounting irregularities. But Mr. Giuliani insists he wants to help make WorldCom a model for corporate governance. As part of that model, he is advocating a separation of the role of chairman and chief executive. Some have speculated that Mr. Giuliani may take a position as chairman, if the roles are split.
Among Mr. Giuliani's plans for WorldCom are "a lot more transparency" into the company's operations and "standards opposite of the low standards" that were previously in place at the company. ("Giuliani States Commitment To Helping WorldCom Recover," Wall Street Journal, November 20, 2002)