Posts Tagged ‘executive compensation’
The Salary Penalty for Misconduct
Here’s yet another way to convince senior executives and other colleagues that a strong compliance program matters: misconduct at the company can trim the salary offer those people might get at their next job — by 4.6 percent or more, apparently. So says a fascinating paper from Harvard Business School, where two professors examined a…
Read MoreCompliance Lessons in Cardinal Governance Fight
We have an update to that corporate governance drama at Cardinal Health, where the Teamsters were trying to strip the CEO of his role as board chairman, and cited excessive pay to the company’s chief compliance officer as evidence of poor leadership. Their campaign worked. Granted, their shareholder proposal failed to win a majority at…
Read MoreTeamsters Blast Cardinal Health Compliance Efforts
The Teamsters’ Union is pressuring Cardinal Health to separate the CEO and board chairman roles at the company—and cites large bonus pay to Cardinal’s top compliance officer as one sign of misgovernance. The Teamsters made their campaign public last week, with a letter to Cardinal investors urging them to support a shareholder proposal for an…
Read MoreRisky Talk: Compliance Officers and CEO Pay
Should the chief compliance officer have a role in setting executive pay? That was a big question asked at the Society of Corporate Compliance & Ethics annual conference this week. You couldn’t escape the subject. More than 1,700 compliance professionals had gathered to talk about good corporate conduct, and we had examples of bad corporate conduct…
Read MoreAnother Governance Problem Mylan Calls Out
For corporate governance and compliance thinkers, Mylan Labs is the gift that keeps on giving. Earlier this week we looked at the compensation incentives Mylan designed for senior executives—incentives that drove them to raise the price of EpiPens to punishing levels for consumers. Let’s keep pulling on that thread. It leads to some excellent questions…
Read MoreEpiPen Fiasco Shows Corporate America Like It Is
Start with this fact fixed in your mind before we begin talking about Mylan Labs and its EpiPen: a company’s stock price is determined by its future earnings growth. You can look up how corporate finance theorists reached that conclusion if you want. For our purposes here—which are to examine how Mylan landed in such…
Read MoreThe Clash in Compensation and Culture Nobody Mentions
Credit goes to Credit Suisse today for giving us our latest example of real, practical challenges in corporate culture and conduct. Credit Suisse is one of our frequent fliers on this blog. I last wrote about the bank in March, when CEO Tidjame Thiam announced more layoffs and asset write-downs after discovered that employees had…
Read MoreHow BP’s Board Undermines Its Drive for Compliance
First let me assure you that today’s post will not be yet another column castigating BP, its board, and its CEO for runaway executive compensation. We could spend lots of time talking to that point, certainly. What happened at BP’s annual shareholder meeting last week was appalling. In 2015 BP racked up the largest loss…
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