KU students compete in ethics contest

A team of Kansas University students is bracing for a national competition today in the Thunderbird Social Responsibility and Ethics Challenge in Glendale, Ariz.

The KU students, all pursuing master’s degrees in business administration, recently placed second out of 55 teams to advance to the final round. The national competition will involve the University of California at Berkeley, the London Business School, the University of California at Los Angeles and HEC Montreal in Canada.

The Thunderbird Challenge requires students to create the best solutions to corporate social issues involving customers, employees, suppliers, communities and stockholders.

KU’s team consists of Michael Switzer, Leavenworth; Barbara Ballard, Lecompton; Dale Bunn, Independence; Todd Chipman, Omaha, Neb.; and Amy Boomer, Midland, Texas.

Scandal

Wal-Mart freezes ex-exec’s benefits

Wal-Mart Stores Inc. disclosed Friday that it has frozen millions of dollars in benefits for former vice chairman Tom Coughlin, who resigned from Wal-Mart’s board amid allegations of improper spending and a possible government investigation.

Wal-Mart suspended Coughlin’s vesting of 186,407 shares of restricted stock worth $9.77 million at the end of the company’s last fiscal year, plus another 302,503 stock options exercisable within 60 days.

Coughlin retired as a Wal-Mart officer last year but remained on the board until March 25, when an internal probe turned up expense account improprieties of up to $500,000 dollars. He has denied any wrongdoing.

Accounting probe

Raytheon places CFO on leave

Defense contractor Raytheon Co. placed its chief financial officer on leave Friday and offered to settle a government inquiry into accounting practices at its Wichita-based commuter aircraft business.

Edward S. Pliner, Raytheon’s senior vice president and CFO since 2002, was put on administrative leave, effective immediately. A second employee also suspended.

Finance

Kroger narrows loss for quarter

Kroger Co. on Friday said its fourth-quarter loss was smaller than previously reported, after the Cincinnati-based supermarket operator lowered the amount of a goodwill impairment charge due to an accounting change.

Kroger, which owns Dillons stores in Kansas, said the revised charge — related to writing down the value of its Ralphs supermarket chain — was $857 million, or $1.17 per share. That’s down from the $884 million, or $1.21 per share, it reported in its preliminary results March 8.

As a result, Kroger said, its fourth-quarter loss was $648.3 million, or 89 cents per share, narrower than the previously reported loss of 93 cents per share.

Kroger is led by CEO David Dillon, a Kansas University graduate.