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Wednesday, November 03, 2010

BLOGSCAN: Corporate Characteristics that Lead to Fraud

Kurt Eichenwald on the corporate characteristics that lead to fraud: 1) huge positive incentives for achieving financial targets, huge negative incentives for not achieving them; 2) a cult of personality, or a rock-star CEO; 3) a weak compliance department.  The example was for-profit hospital system Columbia/ HCA, whose former CEO just was elected governor of Florida.  See the video on PharmaGossip.

2 comments:

  1. We can also see the feeling of entitlement in the Nov. 3, 2010 WSJ article Insider Case Alleges Doctor’s Tips. The short version is we have two doctors trading information regarding an ongoing drug trial.

    I cannot find the link but one doctor, Yale, was featured a few years ago decrying the fact that he found medicine to be mind numbing, dirty and not worth the $500,000.00 starting salary when he could make $5M at a hedge fund.

    Ego and a sense of entitlement seem to be common traits in people involved in these situations.

    Steve Lucas

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  2. Found the link:

    http://www.margaretsoltan.com/?p=27234

    University Diaries: One of the smellier stories coming out of…

    Steve Lucas

    ReplyDelete