One of the reporters here at DIRECT claims that every scandal in the 20th Century – major or minor – has a connection with New Jersey, his home state.
It’s a trick, of course: Dig deep enough and pretty much anything can be linked to anything else. But the direct marketing industry has a tangible connection to WorldCom, the scandal du jour. (Enron? Really, now. Enron was so second quarter.)
Melvin Dick, formerly Arthur Andersen’s lead auditor for WorldCom, joined Coldwater Creek as chief financial officer in early June. That is, he works in his responsibilities to the Sandpoint ID-based cataloger in between testifying on Capitol Hill.
I have no reason to doubt that Dick is good at whatever it is a CFO does. But I also know that corporations have a limited tolerance for executives that may bring some unfavorable light onto the company. And there are congressmen that excel in this: During his congressional territory, Dick ran afoul of Gary L. Ackerman (D-NY), a House wit.
In the New York Times reckoning of their interaction, Dick issued a mushy comment about not knowing whether WorldCom illegally accounted for certain expenses.
“Oh, stop giving us those happy horsefeathers,” the Times quoted Ackerman as saying. “You still feel the need to cover up for these guys? I thought you were off the job. Would you certify their audits today?”
Dick, according to the Times, admitted that with his current knowledge he wouldn’t.
I can’t be the only smartass who looked at his signature above Coldwater Creek’s latest quarterly financial statements (it did rather well: its net income doubled while its total revenue slipped), and had a quiet “oh, really?” moment.
If Dick’s exposure in the WorldCom hearings is limited, there’s no issue. But corporate corruption is going to be a hot issue in this congressional election year. Balancing the value his expertise offers the company against seeing the phrase “Dick, who is currently CFO of Coldwater Creek” repeated in the business pages – or the national news section — throughout the fall may be a tough call for the cataloger.
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