More to the point were a list of some 11 initiatives in the areaof corporate governance, many if which are a direct response tospecificcharges made during the firm's regular shareholder conferencecall. These included compensations for Farkas' boat and airplane,political contributions and loans made to executives at below thecost of financing. Certain investments made by members of theexecutive committee in Insignia initiatives were also questionedduring the call.

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"We heard the shareholders and we listened to them," an InsigniaFinancial spokesperson tells GlobeSt.com. "If we can accommodatetheir concerns where practical and within reason, we are going todo that." He added that reviews of corporate governance were aconstant process prior to the conference call and will continue tobe so, making it clear that the changes were not based solely inthe conference call conversation.

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In its filing, Insignia stated that "the company would no longerreimburse the chief executive officer [Farkas] for any companyusage of the boat. There have been no payments by the company foruse of the boat in 2002."

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Ditto the Farkas airplane. "With respect to the company'spayment for use of a fractional interest in an aircraft owned bythe chief executive officer and net leased by the company, suchlease and usage will terminate permanently no later than Sept. 30,2002."

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In terms of executive loans, the firm is putting a halt to themaccording to the filing, along with modifications or extensions"that are beneficial to company executives." Politicalcontributions going forward will be reviewed in advance of thedonation.

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The compensation committee has not suggested a final policyconcerning executive investments, but committed to the SEC that itis "continuing to review" the issue.

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"I'm glad the board is taking these concerns seriously," statesDavid Einhorn, portfolio manager for Greenlight Capital inManhattan and one of two shareholders who raised the issues. "It isa step in the right direction, and they are acknowledging that someof these actions were and are inappropriate. Frankly while it'sgood that they are considering further actions, it seems to me thatif previous payments were inappropriate, they should berefunded."

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"Insignia has no comment at this time," said thespokesperson.

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John Salustri

John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.