Business Digest


March 12, 2003

In the Region

Deputy secretary of health is leaving for staff post in D.C.

Debbie I. Chang, deputy Maryland health secretary for the past four years, said yesterday that she would be leaving next week to join the staff of the National Academy for State Health Policy in Washington. "It was a difficult decision," she said, "but a great opportunity came up."

Chang oversaw the state's Medicaid program, which has an annual budget of $3.3 billion. She said she was pleased that the state's HealthChoice program for welfare mothers and children is "now stable" and "using data to improve the quality of care," and that the state has started several programs to allow senior citizens to receive long-term care in the community, not just in nursing homes.

The National Academy for State Health Policy, based in Portland, Maine, and opening a Washington office, provides information, policy analysis and training for state officials. Chang has been a member of its steering committee.

GenVec Inc. reports loss of $5.4 million in 4Q

GenVec Inc. said yesterday that its fourth-quarter revenue narrowed from a year ago.

The Gaithersburg biopharmaceutical company reported a net loss of $5.4 million, or 25 cents a share, for the quarter that ended Dec. 31, compared with a net loss of $6.4 million, or 34 cents per share, for the year-earlier quarter. Revenue was $3.5 million, compared with $93,000 in the earlier period.

For the year, GenVec reported a net loss of $25.6 million, or $1.17 per share, compared with a net loss of $19.1 million, or $1.05 per share, in 2001. Revenue for 2002 was $8.4 million, up 91 percent from $4.4 million in 2001.

Northwest Hospital gets grant for cancer screening

Northwest Hospital Center in Randallstown won a grant for about $45,000 from the Baltimore County Health Department to provide breast cancer screening and education to county residents who are at least age 50 and do not have insurance for mammograms.

The program began Monday and will last 16 weeks. The hospital's Breast Health Program will offer free exams, mammograms, educational services and referrals for treatment, if necessary. The hospital also will offer breast health awareness lectures around the region.

Information on eligibility requirements: 410-521-5913.


Citigroup paid Rubin $18.4 million in 2002; CEO got $9 million

Citigroup Inc.'s Robert Rubin, the former U.S. Treasury secretary and chairman of the firm's executive committee, earned $18.4 million last year, and Chairman and Chief Executive Officer Sanford Weill earned $9 million, according to the company's annual proxy filing to the Securities and Exchange Commission yesterday.

Rubin, the highest-paid executive at the world's biggest financial services company, received a $1 million salary, $10.25 million in a cash bonus and $5 million in stock - all the same as in 2001. He also got options valued at $1.87 million and $215,836 in other compensation.

Weil's compensation included $7.4 million in stock options, and he didn't receive a bonus. In 2001, his compensation was $30.3 million.

American Airlines getting bumped from S&P 500

Standard & Poor's said it will remove American Airlines parent AMR Corp. from its index of 500 large companies, as investors sold the airline's stock to a 52-week low yesterday amid reports that the carrier is arranging bankruptcy financing.

AMR will be dropped tomorrow because of the steep fall in its stock price and market capitalization, S&P said. It will be replaced by Apartment Investment Management Co., a Denver-based real estate firm.

AMR shares dipped 82 cents to close at $1.59 as investors reacted to a New York Times report that American, the world's largest carrier, is seeking commitments for up to $2 billion in financing if it files for bankruptcy. They lost another 15 cents in extended trading.

United Airlines requests reorganization extension

United Airlines is asking a bankruptcy judge in Chicago for up to six more months to file a reorganization plan, noting the size and complexity of its case.

The airline is required to file detailed plans with the bankruptcy court by the four-month mark of its Chapter 11 filing, which would be April 8. United wants the deadline to be pushed back to Oct. 6.

But United said in a filing, made available yesterday, that the transformation plan at the core of its reorganization, which calls for a low-cost carrier that its employees oppose, "remains a work in progress." Judge Eugene Wedoff might consider the request at United's next bankruptcy hearing, March 21.

Many mutual fund charges didn't get eligible discount

Nearly a third of mutual fund transactions that appeared eligible for a sales charge discount did not receive one, causing those customers to be overcharged an average of $364 per transaction, said a report yesterday by securities regulators.

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