Former SEC chairman speaks out on corporate practices

Arthur Levitt says public companies should stop execs from borrowing against their equity stakes

Arthur Levitt thinks corporate executives can do a better job. The former Securities and Exchange Commission chairman opined yesterday that public companies should prevent top executives from borrowing against their equity stakes.

Levitt’s comments were made in reference to the situation at Green Mountain Coffee Roasters, which recently revoked its chairman’s and lead director’s board titles after they had taken out loans against their company stock and sold shares during a time when they should not have done so.

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