Briefcase

GE to make board more independent

General Electric Co. announced a series of new policies Thursday to strengthen its corporate governance, including selection of a presiding director and a plan to make two-thirds of its board members independent.

The chair of the board’s compensation committee will serve as presiding director and run at least three meetings a year with only nonemployee directors, GE said.

GE said that by the first of the year two-thirds of its board, 11 of 17 directors, would be classified “independent” under proposed New York Stock Exchange rules. The proposal defines independent members as members who are not GE employees.

Pictured above is GE’s corporate headquarters in Fairfield, Conn.

Economy

Productivity on the rise

Productivity, a crucial ingredient in the economy’s long-term vitality, grew at a brisk annual rate of 4 percent in the summer. It was the strongest showing since the beginning of this year.

Productivity ” the amount of output per hour of work ” bounced back in the third quarter, after growing by a sluggish 1.7 percent pace in the second quarter of this year, the Labor Department reported Thursday.

Separately, new claims for unemployment benefits dropped last week by a seasonally adjusted 20,000 to 390,000, the lowest level since early October, the department said in a separate report.

Wall Street

SEC accuses fund of misleading investors

A hedge fund company misled investors by claiming solid gains even as its funds began to lose more than half their value, the Securities and Exchange Commission charged Thursday.

The SEC filed a civil fraud complaint in Manhattan federal court charging Beacon Hill Asset Management “provided false or misleading information to investors” to hide “massive portfolio losses.”

The SEC said it had reached a deal with the company to establish stricter oversight requirements while the investigation continues.

Entertainment

Disney profit grows

The Walt Disney Co. reported a larger fourth-quarter profit Thursday on the strength of hit films such as “Signs” and “Lilo and Stitch,” although attendance at its theme parks remained weak.

Disney chairman and chief executive Michael Eisner said 2002 was particularly difficult, but that the company would reap the benefit of capital investments by showing revenue growth of “well over 20 percent” in 2003.

Energy

Halliburton earnings slow

Halliburton Co., the oilfield-services and construction company once headed by Vice President Dick Cheney, said Thursday that its earnings fell by 50 percent in the third quarter as the oil and gas industry continued to soften.

The Dallas-based company said it earned $94 million, or 22 cents a share, in the three months ended Sept. 30 compared to $179 million, or 42 cents a share, in the same quarter last year.