Drkoop.com Gives CEO Loan

Drkoop.com Inc. gave its chief executive a short-term loan of nearly $1 million for “personal liquidity needs” earlier this month, after company shares plunged more than 50% over two trading days. Donald Hackett, who also is president of the Austin, Texas, online health-care site, borrowed $966,000 from Drkoop.com on April 3, according to a filing with the Securities and Exchange Commission. He repaid the no-interest loan in full on April 10. On April 3, the day the loan was made, Drkoop.com shares fell more than 19% to $2.97. The previous trading day, March 31, the shares had plummeted 41%. Companies sometimes lend executives money for repayment of debt used to buy stock or for other reasons, such as the purchase of homes. The loan to Hackett was almost four times his annual salary for 1999. He was paid $244,350 last year, according to the SEC filing. Company shares have lost more than 76% of their value this year. The stock fell 13 cents to $2.81 Tuesday.