GUILT BY ASSOCIATION

There are two issues surrounding Sprint's current management imbroglio that no one is questioning: Bill Esrey has done — and is still capable of doing — an outstanding job as the company's CEO, and it's time for him to leave. This may sound contradictory, but it's not, especially after scandal rocked telecom. Esrey, as well as Chief Operating Officer Ron LeMay, was reportedly forced out by the company's board over the use of questionable tax shelters. Right now, though, those shelters are only questionable — Esrey hasn't done anything wrong legally, and the IRS could end up ruling that the tax shelters in question are acceptable. A few years ago, the company would have simply waited for a government ruling, and when one came down, adjusted its practices and the books accordingly. But times have changed, especially after corporate malfeasance brought down WorldCom, one of Sprint's biggest competitors. Sprint's board now recognizes that in this cautious environment, company leadership must not only be innocent of wrongdoing, but above suspicion as well. Questionable ethics and accounting practices alone can cause long-term damage to a company's business and its stock price. Esrey is not above suspicion, so he is gone, showing just how much the corporate scandal has altered the telecom industry. If it weren't for WorldCom, Bill Esrey would still have a job, Gary Forsee would still be biding his time at BellSouth, and Sprint's future wouldn't be up in the air.