The decision by Paul O'Neill, US treasury secretary, to hang on to about Dollars 100m worth of Alcoa stock may not be illegal. But it is wrong. There is no law requiring Mr. O'Neill to divest himself of the shares and options that he earned during his tenure at Alcoa. Indeed, Mr. O'Neill says he has received clearance from government ethics experts to hold on to them. But this is a poor defence.
Most executives tend to sell shares in their old company when they move to a new job.
They also generally forfeit any unexercised options - ordinary employees certainly would. By flouting these standards, Mr. O'Neill exposes the whole Bush administration to the charge of measuring with double standards. Mr. O'Neill's recalcitrance leaves a sour taste. Mr. O'Neill is the only member of President Bush's senior economic team not to sell his holdings or place them in a blind trust to avoid potential conflicts of interest. Mr. O'Neill's aides have said that it would be difficult to quickly unwind a position of that size without damaging the stock price, an argument that some financial analysts reject.