Is Gary Winnick, chairman of beleaguered telecom Global Crossing, trying to save his own hide by making a public pledge of $25 million to those among his employees who lost large sums of their 401(k)s plan during the recent telecom bust? Or, is he, as he recently told Congress, trying to set a precedent in corporate moral responsibility?
Winnick recently offered to contribute $25 million to help counteract losses sustained by current and former employees in their retirement plans. There is currently a class-action suit against the company by employees who saw their retirement savings fade away. Winnick is also facing an inquiry surrounding circumstances of his sale of $124 million worth of Global Crossing stock. Winnick reportedly reaped a total of $734 million from the stock.