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Bush earned millions in juggling act as corporate adviser

 
Former Gov. Jeb Bush has severed many of his corporate ties for a likely bid for president.
Former Gov. Jeb Bush has severed many of his corporate ties for a likely bid for president.
Published May 29, 2015

WASHINGTON — During his transition from Florida governor to likely presidential candidate, Jeb Bush served on the boards or as an adviser to at least 15 companies and nonprofits, a dizzying array of corporate connections that earned him millions of dollars and occasional headaches.

Bush returned to corporate America after leaving the Governor's Mansion in early 2007, and his industry portfolio expanded steadily until he began shedding ties late last year to prepare a run for president.

Executives who worked alongside Bush describe him as an engaged adviser.

There is no formal rule limiting the number of boards on which one person can serve. But in the wake of the Enron scandal, common sense dictates a small number, experts said. "If somebody starts serving on more than three or four boards that's a problem," said law professor Elizabeth Nowicki, a former Securities and Exchange Commission lawyer.

Bush served on the boards or as an adviser to 11 companies or nonprofits at a time each year from 2010 to 2013, the Associated Press found. Those ties were in addition to his own businesses, such as Jeb Bush & Associates, and the educational foundations he created.

"Gov. Bush has always conducted his business with the highest integrity and performance, just as he did when he served as Florida's chief executive for eight successful years," said Bush spokeswoman Kristy Campbell.

She said not all the corporate entities were the same — some were board slots, some advisory positions and others nonprofits — and suggested it was unfair to put them all in the same basket. AP's review found that Bush served on the board of directors of as many as seven for-profit companies at a time — while also serving as an adviser to other companies and nonprofits.

Bush's experience on corporate boards could evolve into a theme during the 2016 race for the presidency. Among the issues the Florida Republican could be asked to explain:

• One company that paid Bush $15,000 a month as a board member and consultant, InnoVida Holdings, collapsed in fraud and bankruptcy, with the company's CEO, Claudio Osorio, now serving 12½ years in prison. Bush joined InnoVida despite warning signs that Osorio's prior company dissolved amid bankruptcy and allegations of fraud.

• At least five companies where Bush served on the board or as adviser faced class-action lawsuits from shareholders or legal action by the government.

• Bush earned $3.9 million from four companies alone since 2007, the AP found, plus $25,000 a year more from a medical company in Georgia, $9,600 annually from Bloomberg Philanthropies and zero pay from a drug addiction nonprofit. His earnings from eight other companies are unknown, and Bush has declined AP's requests to disclose his compensation.