Carlos Ghosn and other executive crooks

tomar

Ad Honoris
Jan 2011
12,538
#1
Prosecutors allege that he and another Nissan director, Greg Kelly, collaborated to understate Ghosn's income by about 5 billion yen ($44 million) over a five-year period ending in March 2015.
Japanese public broadcaster NHK reported that Ghosn also failed to properly disclose homes that were provided for him by Nissan in four different countries. NHK added that prosecutors suspect Ghosn may have pocketed money that was meant for other Nissan executives.


https://edition.cnn.com/2018/11/23/business/carlos-ghosn-nissan-renault/index.html

First it was gods who were worshipped and thought to be all powerful ..... but many countries have now gone secular

Then it was "great leaders"..... that is pretty much over

But the myth of the "great leader" in business still remains... They are still believed to literally work miracles and are paid colossal amounts of money.... Often they fail, sometime as in this case, they are plain dishonest and steal despite an already high income

When will we see the end of "the great business leader" myth and the end of over the top compensation packages for them ?


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Across the board, the more CEOs get paid, the worse their companies do over the next three years, according to extensive new research. This is true whether they’re CEOs at the highest end of the pay spectrum or the lowest. “The more CEOs are paid, the worse the firm does over the next three years, as far as stock performance and even accounting performance,” says one of the authors of the study, Michael Cooper of the University of Utah’s David Eccles School of Business.

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Game maker Hasbro has struggled ever since the financial crisis to grow revenue and profits in an environment where kids have ever-growing entertainment options. But while revenue remains stuck near 2008 levels, Hasbro has continued to increase its compensation for its top five executives, which jumped 80% in 2013.

Tenet is a regional healthcare provider, operating dozens of hospitals in 14 states across the country. While the company pays its executives relatively modest base salaries, it has a generous incentive pay structure that has helped the combined pay of its top five executives increase 36% to $33.4 million in 2013, despite the fact that the company’s earnings per share has remained flat.

Staples has come under the same pressure from online retailers that have dogged other big box retailers. Plagued by falling foot traffic, Staples earnings fell by 43% in the first quarter of 2014 ended in May, after a rough 2013 in which operating income fell by double digits.

Though Staples’ earnings per share wasn’t high enough for top executives to receive incentive pay, in March the board decided to approve a “Reinvention Cash Award” to top employees in order to motivate and retain the company’s already well-paid executives. As a result of the program, CEO Ron Argent was given $300,000 in cash on top of his $10.8 million total compensation package, which had already increased 40% in 2013. “This is the worst kind of bonus,” writes Becker, “as the compensation committee essentially changed the rules of the game after the game had already [been] played….
 
Jul 2017
398
Sydney
#2
White collar crime still goes unchecked even after Enron and other examples from around the globe.

I believe there is no deterrent or even when there is law forbidding such acts, the possible punishments are not harsh enough
 

Bart Dale

Ad Honorem
Dec 2009
6,866
#3
I
White collar crime still goes unchecked even after Enron and other examples from around the globe.

I believe there is no deterrent or even when there is law forbidding such acts, the possible punishments are not harsh enough

The board of directors is supposed to police this kind of thing send to prevent, but they are clearly not doing their job. The question is, why aren't they doing their job of looking out for the interest of the employees and shareholders? Something is causing or at least allowing it to happen.

Perhaps more accountability is needed of the boards who spprove all this executive pay. These people are just as guilty as the executive receiving the pay, they are the ones approving it.
 
Jul 2017
398
Sydney
#4
I



The board of directors is supposed to police this kind of thing send to prevent, but they are clearly not doing their job. The question is, why aren't they doing their job of looking out for the interest of the employees and shareholders? Something is causing or at least allowing it to happen.

Perhaps more accountability is needed of the boards who spprove all this executive pay. These people are just as guilty as the executive receiving the pay, they are the ones approving it.
I think part of the issue is that the board is appointed by the CEO. If they take a very strict approach against the CEO and his management team they may not get nominated to the board again
 
Jan 2012
390
South Midlands in Britain
#5
Most business activity these days is managed through audit trails so light-fingered employees will be eventually spotted. This does not apply to senior executives.

As someone who has run audits I have tracked decisions and instructions back to senior executives who have acted dishonestly. In every company I have worked for I found myself faced with either blowing the whistle or keeping quiet. In every case I blew the whistle for the simple reason that keeping quiet would implicate me in the dishonest act. Needless to say I was loathed and I suffered bullying as a consequence, but my first duty as a manager was to the shareholders not to the boys club. I am now retired and sleeping better, but I had to take early retirement with a fat cheque to keep me company.

Senior executives are as honest or dishonest as the rest of the population. A good, honest business leader is worth his or her weight in gold. There are many like that. The problems only really start when people get greedy. It is then they get caught.
 
Jan 2012
390
South Midlands in Britain
#7
You can expect Head Office to bury it. That is what Head Office's are for.
The first I came across was an entire factory of a major multinational fiddling their production bonuses and covering it up. None of the senior management wanted to know but I told the external auditors. This was in the day when auditors actually did things other than tick boxes. They made a comment on the financial report, but nobody got fired.
One of the later ones was a company cashier running a very sophisticated scam as a senior director was too casual in his attitudes. He got away with half a million just before the security manager and I closed down on him. He did his time but we got no thank you at all. It was a private company and the owner had trusted the bloke.
What you are dealing with is internal politics inside a business which makes it complicated. Nobody wants to admit they got someone wrong. If I had a fiver for every time I have been told off for not trusting `good blokes' I would be a very rich man.
I reckon the Ghosn business has only surfaced for other reasons within the business. My experience of Japanese management is that they don't like outsiders pushing them about. Fair enough!
 

tomar

Ad Honoris
Jan 2011
12,538
#8
You can expect Head Office to bury it. That is what Head Office's are for.
The first I came across was an entire factory of a major multinational fiddling their production bonuses and covering it up. None of the senior management wanted to know but I told the external auditors. This was in the day when auditors actually did things other than tick boxes. They made a comment on the financial report, but nobody got fired.
One of the later ones was a company cashier running a very sophisticated scam as a senior director was too casual in his attitudes. He got away with half a million just before the security manager and I closed down on him. He did his time but we got no thank you at all. It was a private company and the owner had trusted the bloke.
What you are dealing with is internal politics inside a business which makes it complicated. Nobody wants to admit they got someone wrong. If I had a fiver for every time I have been told off for not trusting `good blokes' I would be a very rich man.
I reckon the Ghosn business has only surfaced for other reasons within the business. My experience of Japanese management is that they don't like outsiders pushing them about. Fair enough!
Interesting experience, thanks

I have seen cases of bribes in tenders (mostly for IT projects) in private companies (typically to the CIO)... the kind of stuff you expect more in government run organizations..... It seems the owners were aware too, but did not care... I began to wonder whether they considered this a part of the "package".... i.e. they paid the CIO less but then he could make some side money off tenders....
 
Jan 2012
390
South Midlands in Britain
#9
Bungs are not unusual, I am afraid. The offer of entertainment is common with many sales managers. You would be surprised how such relatively small sums can influence a manager's judgement. I have no problem with people who have just cut a deal having a celebratory lunch, but I draw the line at weekends away in posh hotels. Managers should be paid a proper, decent reward for their work to get the best possible commercial outcome in both price and service. If a manager is allowed to pick up compensation from others, then who is running the business and for what?
 

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