Investigators: Hollinger duped by former CEO

Conrad Black, the former CEO of Hollinger International Inc., conspired with associates to systematically loot the newspaper publishing company of more than $400 million — nearly all of its profits from 1997 through 2003, an internal investigation found.

The report, which was filed with the Securities and Exchange Commission on Tuesday, was prepared by a special committee of Hollinger’s board which was formed last year to examine concerns from shareholders about payments made to Black and others.

Black has since been forced out as chief executive and chairman of Hollinger International, following initial findings from the committee that he and others improperly received millions in fees and payments that should have gone to the company.

Trade

WTO approves sanctions against U.S. over rules

The World Trade Organization authorized the European Union and seven other leading U.S. trading partners Tuesday to impose more than $150 million worth of sanctions against the United States for failing to repeal anti-dumping rules deemed illegal by the WTO.

The ruling by the Geneva-based organization allows the complainants to fine the United States up to 72 percent of money collected from foreign exporters under the so-called Byrd Amendment.

That legislation empowers Washington to hand over to U.S. companies the duties imposed on foreign firms judged to be unfairly dumping cheap goods on the U.S. market.

However, the EU and the other complainants — Japan, Brazil, Canada, Chile, India, South Korea and Mexico — indicated they would hold off from imposing sanctions. Instead they are likely to use the threat of retaliation to press the U.S Congress for an early repeal of the legislation.

Wages

Outsourcing pays off for CEOs, study finds

Chief executives of U.S. companies that outsourced the greatest number of jobs reaped bigger pay and benefits last year, according to a new study of executive compensation released Tuesday.

Average CEO compensation at the 50 companies outsourcing the most service jobs rose by 46 percent in 2003 from a year earlier, compared with a 9 percent increase for CEOs at 365 big companies overall, the study by Institute for Policy Studies and United for a Fair Economy found.

Aviation

Boeing wants Airbus aid\ cut to protect its 7E7

Trying to protect its planned 7E7 Dreamliner from competition, Boeing Co. is mounting a campaign to cut off European government loans to archrival Airbus.

Harry Stonecipher, Boeing’s new chairman, started the latest subsidies spat. He has won support from President Bush, who is threatening to take Europe to the World Trade Organization unless the loans stop.

Boeing wants to prevent government loans for new aircraft so France-based Airbus can’t build a rival to the 7E7 — the first all-new aircraft the Chicago-headquartered company has designed in 15 years.

The firm’s Wichita plant, which Boeing is considering selling, is slated to build the Dreamliner’s engine pylons, forward fuselage and flight deck.