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Buy It Like You Mean It - Tools for Responsible Shopping

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Gateway manufactures computers and computer products which it retails directly to consumers via its own Gateway Country stores, the company website or telephone orders. Headquartered in Irvine, California, the company recorded sales of $3.98 billion in 2006 and employed 1,700 people.

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by Scraper 3 years ago
Insider trading, wasteful spending on executive severances. [ ] "In November 2002, Gateway announced that for almost two years it was under investigation by the Securities and Exchange Commission (SEC). The investigation began the same time the first of six class-action lawsuit were filed against the company. The lawsuits alleged that the company's board of directors and managers included insider trading and wasteful spending on executive severance pay. Jeff Weitzen, who served as CEO in 2000, left the company along with chief financial officer John Todd. Lawsuits filed by shareholders last year asked the company to sue the two for damages. The lawsuits were eventually combined and settled in 2002 for $10.5 million. Through the settlement Gateway admitted no wrongdoing." Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230
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Insider trading, wasteful spending on executive severances. [ ] "In November 2002, Gateway announced that for almost two years it was under investigation by the Securities and Exchange Commission (SEC). The investigation began the same time the first of six class-action lawsuit were filed against the company. The lawsuits alleged that the company's board of directors and managers included insider trading and wasteful spending on executive severance pay. Jeff Weitzen, who served as CEO in 2000, left the company along with chief financial officer John Todd. Lawsuits filed by shareholders last year asked the company to sue the two for damages. The lawsuits were eventually combined and settled in 2002 for $10.5 million. Through the settlement Gateway admitted no wrongdoing." Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230
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CEO earns $900k. [ ] "In 2006, President and CEO, Theodore W. Waitt, earned $889,563 according to the AFL-CIO and $668,823 in total compensation according to the Securities and Exchange Commission (SEC)." Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230
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Closing retail stores and laying off workers. [ ] "In April 2004 Gateway announced it would close its 188 retail stores and lay-off 2,500 workers. According to USA Today "Gateway was the only major PC maker to run its own stores. That made it hard to compete with rivals, which didn't have the high cost of store employees and real estate. Gateway's overhead on PCs was often twice as high as rival Dell's, which sells mainly via phone and Internet."" Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230
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Products found washed up and leaching toxins into african groundwater. [ 1 ] "Basel Action Network (BAN) is a group dedicated to preventing the "globilization of the toxic chemicals crisis." In a 2005 report entitled “The Digital Dump: Exporting Re-use and Abuse to Africa,” BAN examines the current downside to the information technology growth in the industrialized world, focusing on the environmental ramifications in Lagos, Nigeria. The study demonstrates how Nigeria, representative of developing nations, has disproportionately carried the burden of toxic cyber waste. The formal and informal dumps have leached dangerous toxins, such as dioxins, polycyclic aromatic hydrocarbons, and heavy metals, into the air and groundwater. Gateway products were among those found “washed up” on the West African import market." Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230
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Tied for lowest score for use of toxics. [ ] "On the 2005 Computer Report Card, published jointly by the Computer TakeBack Campaign and the Silicon Valley Toxics Coalition, Gateway received a score of 12 for their policies regarding electronics take back, disposal procedures and the materials used in their computers. Gateway was in a four way tie for lowest score, along with Acer, Panasonic and JVC." Quoting CoopAmerica http://www.coopamerica.org/programs/responsibleshopper/http://www.coopamerica.org/programs/responsibleshopper/company.cfm?id=230
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