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Report: Bayh's Wife Made Millions As Board Member For Health Insurer
Zachary Roth | October 29, 2009, 2:15PM
Sen. Evan Bayh (D-IN)
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Yesterday, Sen. Evan Bayh joined his colleague Joe Lieberman in suggesting that he may oppose health-care reform, citing concerns about the deficit. Bayh has long been one of the more conservative members of the Democratic caucus. But is his stance also affected by the fact that his wife has reportedly earned at least $2 million over the last six years as a member of the board of a major health insurer?
Susan Bayh's affiliation with Indianapolis-based WellPoint isn't news. But a new report on TheStreet digs into the details. It also finds that last year, Susan Bayh sat on four other corporate boards, in addition to WellPoint's. She received over $656,0000 in cash and stock for all her board work, around half of which came from WellPoint.
As the site puts it: "Susan Bayh's corporate directorships provide a significant chunk of the Bayh family income."
It's also worth noting that Susan Bayh was a mid-level attorney at Eli Lilly before joining WellPoint's board in 1998, while her husband was governor. That suggests that the company, at least, may have felt that her value lay more in the access she offered to Evan Bayh than in her own accomplishments.
The report also notes that Susan Bayh tends to sell her stock in WellPoint very quickly, has never held stock in the company for longer than a year, and currently owns no shares. According to TheStreet, that suggests that her concern is less with the company's long-term stock price -- as might be expected for a member for the company's board -- and more with the opportunity to make money quickly and cash out.
There's no way to know whether any of this affects her husband's positions. Evan Bayh denies that it does, telling an Indiana paper in 2007:
I can honestly tell you that if my wife did not have a job, none, I can't think of a single decision I've made that would be any different. I look at what's best for our state and our country and my own conscience. My integrity matters more to me than anything, so I always do what's right for the people who put their trust in me.
A spokesman for Evan Bayh did not immediately respond to a request for comment.
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Why oh why
October 29, 2009 2:37 PM
Naked, legal, "moderate" corruption. Bayh is literally in bed with health care profiteers and K-Street whores.
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Why oh why
October 29, 2009 2:38 PM in reply to Why oh why
Or perhaps more accurately: Bayh is literally a K-Street whore.
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traitorjoe
October 29, 2009 2:45 PM
You didn't think those $50,000 contributions to the Senate campaign were enough, did you? Wonder how many millions the health care lobby paid to Lieberman's family.
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Why oh why
October 29, 2009 2:53 PM in reply to traitorjoe
Lieberman Shills for the Healthcare Industry
http://www.harpers.org/archive/2009/10/hbc-90005996
"Lieberman has long been one of the industry’s favorite players on the hill, accepting more than $1 million in campaign contributions from the insurance industry and more than $600,000 from pharmaceuticals and related healthcare-products companies. But his ties run deeper than that. His wife Hadassah previously worked for two lobbying firms, Hill & Knowlton and APCO, handling matters for their healthcare and pharmaceuticals clients. Throughout the 2006 campaign, Lieberman pointedly refused to discuss the scope of his wife’s engagement for the healthcare industry or even the specific clients for whom she was working. But there seems to have been plenty of opportunity for synergy with Lieberman’s work in Congress."
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Avvocato
October 29, 2009 2:50 PM
Bought and paid for POS!
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dotkommissar
October 29, 2009 3:09 PM
I think this story is pretty damning, but I have one small objection to its journalistic merit, if only because I'm reading this article during my Corporations class.
While it is absolutely true that directors on a corporation's board often hold shares long term, and that Susan Bayh's lack of equity in the company she helps to manage is conspicuously out of the ordinary, it is also common for the integrity of corporation directors to be called into question because of conflicts of interest arising out of the conflict between their role as a shareholder and as a manager.
If Susan Bayh currently held a significant number of WellPoint shares, wouldn't we then question whether her husband's public opposition is intended to bolster WellPoint's share price in the same way that Leiberman's possible filibuster support caused health insurance stocks to rally in the wake of the opt-out public option's inclusion in the merged Senate bill?
I think on the balance I'd find less potential for corruption if Susan Bayh doesn't currently own WellPoint shares. Her duty as a WellPoint director is to do everything she can to benefit the company and the shareholders. If Senator Bayh is being swayed by his wife, that's a least a bit more preferable than being swayed by profits from the short term fluctuations in share price that his words can produce.
That's not to say this isn't a massive conflict of interest, and that Senator Bayh's statements are almost certainly not motivated by duty to his constituents.
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riffle
October 29, 2009 3:38 PM in reply to dotkommissar
dotkomn wrote: "I think on the balance I'd find less potential for corruption if Susan Bayh doesn't currently own WellPoint shares."
Apparently she does currently own shares. From Edgar at the SEC:
5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)
65,785
---
From the most recent SEC Edgar reporting in July.
Check out her many transactions!
Link here
or if HTML link doesn't work:
http://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=0001192083&filenum=&State=&SIC=&owner=only&action=getcompany
Lesse, if my figures are right (and I'm not much on stocks), she has 65,785 shares and Wellpoint is trading at 47.66, so that's over 3 million dollars she had in shares during that July filing.
Bayh said "My integrity matters more to me than anything".. .except for several million dollars, apparently.
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riffle
October 29, 2009 3:52 PM in reply to riffle
I'm Sorry! I said I wasn't much for stocks and even though that's supposed to be her Wellpoint page on Edgar, it appears that may reflect stock for another company (a communications company).
I'll have to dig some more but please disregard that.
Mea culpa.
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NotFooledByDistractions
October 29, 2009 3:10 PM
Lieberman is no better - his wife is profitting too. It's really no surprise that these two both come out against reform. Representing your constituents? My arse.
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roxanne
October 29, 2009 3:11 PM
I hope that Rachel Maddow or Keith Olbermann will pound this into the ground over the next few days. Regardless of whether Bayh is with us or not, voting against the bill will never look good for him. It will always been seen as a conflict of interest. He'd better vote Yes!
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truthspeaker
October 29, 2009 3:13 PM
Isn't there a way for an ordinary citizen to force disclosure of these senators contributors and, how their vote on issues reflect their allegiance?. Secondly, why does Lieberman continue to hold a position of authority in a democratically controlled senate?. He has to go.
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dotkommissar
October 29, 2009 3:22 PM
the problem is to what degree can lawmakers benefit from those that have a big stake what's on the table? Could we have a zero standard? Is there even a way to predict whether you might have to vote on a law that impacts your father-in-law's business during your 6-year term in the Senate?
I wish I could think of a way to regulate this, but I don't think there is one. The only answer is to vote for someone else, or even better, issue a recall before their term is over (if your state allows recalls, that is).
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JohnW1141
October 29, 2009 3:40 PM
This kind of egregious conflict of interest should be reported on far and wide adn it should be ongoing until Bayh either gets embarrassed enough to reisgn from Congress or his wife finds a more benign job.
What Bayh is doing is worse than John Ensign boinking someone. Ensign is being pressured to resign as is Mark Sanford.
Should Bayh be pressured to apologize like Congressman Alan Grayson did for calling an ex lobbyist a whore?
We sure have some mixed up priorities in this country. So does the main stream press.
Bayh and anyone in the same circumstance should not be allowed to get away with this shit.
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thomas1
October 29, 2009 4:30 PM in reply to JohnW1141
Bayh should have to apologize for BEING a whore.
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Clavis
October 29, 2009 4:48 PM in reply to JohnW1141
No, no, you've got it all wrong: the media's job is to obey the right-wing when they demand that invented fake scandals be covered, like ACORN or the "Betray-us?" ad. It's not the media's job to notice legitimate conflicts of interest or corruption among the rich and powerful. (In fact, that would be a violation of the Rich-Bastard Act of 1980.)
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agio
October 29, 2009 3:50 PM
I don't know what's worse. The fact that Bayh has a price or the fact that, in the grand scheme of things, the price is so low.
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LeaningLeft
October 29, 2009 3:55 PM
There's a lot of anger being directed toward Senator Bayh here ("K-Street whore", "Bought and paid for POS"), and he hasn't even done anything yet. You're crucifying him for a vote he hasn't cast yet and hasn't decided on yet. Take it easy.
As someone from Indiana, I think he will vote for the bill. He has never said that he is anti-reform or against the public option. His concern over the deficit IS looking out for his constituents. There are a lot of libertarians (if not in party affiliation, in philosophy) here in Indiana. He knows that. Right now, he’s setting up the explanation for why he is going to vote for the bill. As we all believe, the CBO will come out and say that the bill is, at worst, deficit neutral or, at best, deficit reducing. Bayh will then say that his concerns (and the concerns of many of his constituents) were met and will vote for it. IMO, of course.
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agio
October 29, 2009 4:39 PM in reply to LeaningLeft
I appreciate your loyalty and generosity of spirit, believe me I do. But nothing will ever come out of "taking it easy" on a sitting Senator.
He's a big boy, I'm sure he can handle a little criticism.
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LeaningLeft
October 30, 2009 8:45 AM in reply to agio
Sure, he can take criticism. I've criticized him many times, but it's usually for votes that he has cast... not for potential votes that he may or may not decide on casting in the future which is what I see going on here. If he filibusters or announces that he will, then go after him. Until then, call or write his office, but save the venom and name calling until he actually does something.
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LeaningLeft
October 30, 2009 11:13 AM in reply to LeaningLeft
This hasn't been reported in too many places, but...
http://www.tnr.com/node/70751
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barryashe
October 30, 2009 8:55 AM in reply to LeaningLeft
Just as Leaning Left was explaining why we should relax a bit and give these pols a chance, here is Sen. Kent Conrad's response to the CBO report and well, well, well...Count another one in!
Short translation of Conrad's statement: I now have enough rhetorical cover and have shown enough concern about budgetary constraints to get on board the big train leaving the station. Conrad was welcomed on board the train by Reid and Baucus who had earlier gotten good seats with a view. That band of supposed holdouts is down to just Landrieu, Lincoln, Nelson, Bayh, and Lieberman. At this point I count 55 strong votes for HCR and counting. Looks like that personal chat with the President cleared Conrad's thinking.
Lest anyone suppose I think badly of Conrad or Baucus or especially Reid - I don't. They are with us now when it counts and that's all we ask. Now who will be the next to smell the roses and replace those goat's horns with a halo? Bayh, .... Landrieu, .... Lieberman, .... Snowe? ....Voinovich? ....??????
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lousgirl84
October 29, 2009 4:31 PM
Time to barrage his office with phone calls.
131 Russell Senate Office Building
Washington, DC 20510
(202) 224-5623
1650 Market Tower
10 West Market Street
Indianapolis, IN 46204
(317) 554-0750
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Clavis
October 29, 2009 4:50 PM
What's amazing is that a bribe is the easiest thing in the world for citizens to understand, yet our elected officials get bribed a dozen different ways, blatantly and relentlessly, yet, in perfect Alice-in-Wonderland style, it is NEVER DISCUSSED. It's like it isn't newsworthy that Bayh and Lieberman's wives are essentially lobbyists.
But back to looking for Obama's birth certificate!
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nyjosh
October 29, 2009 4:51 PM
Why is this not a conflict of interest?? Are there conflict of interest standards/rules when it comes to our elected officials?
This and the many other instances of spouses/family members of elected officials working on the board of major corporations should be seen as conflicts of interest. If the spouse wants to continue working on the board of an insurance company or a brokerage firm than the elected official should have to recuse him/herself from voting on legislation that directly affects those industries.
In every job their are conflicts of interest rules governing every employee. Why should our elected officials be treated differently?
It seems like this tactic of hiring the spouse/son/daughter of an elected official is pretty common. How come no one calls them out on this? This is the 2nd example of a story on TPM today regarding this, i.e. Rep. Buyer's son being employed by PHRMA.
Clearly if a senators family member is employed by a company and that family member is reliant on that stream of income its natural that the senator may feel a bit differently about cutting into the profits of that firm... Conflict of interest!
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jamzo
October 29, 2009 5:03 PM
how can i get on the wellpoint board?
$2 million over 6 years!
i've been looking for a part-time job
the wellpoint board seems like a good one
really good money for a very small part of your time
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Xantar
October 29, 2009 5:28 PM in reply to jamzo
Keep in mind that as part of this deal, you also have to marry Evan Bayh. I don't know what your personal inclinations are, but I'd need a lot more than an average of about $333,000 per year to do that.
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WestRox
October 29, 2009 5:09 PM
I wish people would stop insulting whores by equating their honest work with the shameful, immoral practices of the Bayh family. Evan & Susan: giving whores a bad name.
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palmbeachmaven
October 29, 2009 5:48 PM
This story has been floating around Indiana for quite awhile and was thrown out in the Indiana papers to counter the corruption charges against Steve Buyer. Interesting that The Street picked it up just as the news about Buyer's son working as a lobbyist for PhRMA comes out.
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Armageddon T. Thunderbird
October 29, 2009 9:08 PM in reply to palmbeachmaven
So Indiana is one big Whore House.
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henk
October 30, 2009 8:26 AM in reply to Armageddon T. Thunderbird
I wish people would stop insulting whores. They are just trying to make on honest buck, politicians on the other hand....
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henk
October 30, 2009 8:24 AM
"My integrity matters more to me than anything, so I always do what's right for the people who put their trust in me."
I believe him, Health Insurance Giants have put their trust in him, they are trusting that he protects their profits. Their trust is well placed.
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