Unexercised stock options and deferred salary "are among those benefits described by the Office of Government Ethics as 'retained ties' or 'linkages' to one's former employer."

Cheney's Halliburton Ties Remain

Lautenberg: congratulations Halliburton and Vice President Cheney!

Cheney's Halliburton Stock Options Soar to $9.2 Million
Thursday, September 15, 2005

WASHINGTON -- Senator Frank R. Lautenberg reiterated his call for Vice President Dick Cheney to forfeit his continuing financial interest in the Halliburton Co (HAL), in light of the surging value of Vice President Cheney's Halliburton holdings. Vice President Cheney continues to hold 433,333 Halliburton stock options, now worth $9,214,154.93 (at close yesterday.)

"As Halliburton's fortunes rise, so does the Vice President's, and that is wrong," said Senator Lautenberg. "Halliburton has already raked in more than $10 billion from the Bush-Cheney Administration for work in Iraq, and now they are being awarded some of the first Katrina contracts. It is unseemly for the Vice President to continue to benefit from this company at the same time his Administration funnels billions of dollars to it."

All of Vice President's Cheney's stock options are "in the money" for the first time in years. According to the Vice President's Federal Financial Disclosure forms, he holds the following Halliburton stock options:

100,000 shares at $54.5000 (vested), expire 12-03-07 33,333 shares at $28.1250 (vested), expire 12-02-08 300,000 shares at $39.5000 (vested), expire 12-02-09

The Vice President has attempted to fend off criticism by signing an agreement to donate the after-tax profits from these stock options to charities of his choice, and his lawyer has said he will not take any tax deduction for the donations. Valued at over $9 million, the Vice President could exercise his stock options for a substantial windfall, benefiting not only his designated charities, but also providing Halliburton with a tax deduction.

The Vice President also continues to receive "deferred salary" from Halliburton. While in office, he has received the following salary payments from Halliburton:

Deferred salary paid by Halliburton to Vice President Cheney in 2001: $205,298 Deferred salary paid by Halliburton to Vice President Cheney in 2002: $162,392 Deferred salary paid by Halliburton to Vice President Cheney in 2003: $178,437 Deferred salary paid by Halliburton to Vice President Cheney in 2004: $194,852

In September 2003, the Congressional Research Service (CRS) issued a memorandum to Senator Lautenberg concluding that holding stock options while in elective office does constitute a "financial interest" regardless of whether the holder of the options will donate proceeds to charities. CRS also found that receiving deferred compensation is a financial interest.
The CRS report can be downloaded at:
http://lautenberg.senate.gov/Report.pdf

The CRS findings contradict Vice President Cheney's puzzling view that he does not have a financial interest in Halliburton. On the September 14, 2003 edition of Meet the Press in response to questions regarding his relationship with Halliburton where he was employed as CEO for five years, from 1995 to 2000, Vice President Cheney said:

"And since I left Halliburton to become George Bush's vice president, I've severed all my ties with the company, gotten rid of all my financial interest. I have no financial interest in Halliburton of any kind and haven't had, now, for over three years."