"Usually by the time someone becomes a senior executive they are very aware of the pitfalls in the organization, and they have become masters at not doing something wrong or not getting caught doing something wrong," explains Peter Rost, a former senior Pfizer executive turned industry gadfly.
Incentive-based compensation systems -- typically 40% to 50% of salespeople's income comes from hitting their numbers -- are one weak point. "They are going to work real hard to increase those numbers and do whatever it takes, and if they think somebody gave them a wink about doing this or that, they are going to run with it." says Rost.
Booting senior executives out for any fraud under their watch might end the wink-and-nod system, giving hope to critics.
"I love this idea. It's a sign that there is a creative mind in government," says Patrick Burns of the Taxpayers Against Fraud Education Fund. "Bring the pain, you bring the change. The pain can't only be felt by a nameless, faceless corporation, it has to sit in the living room of somebody who is in charge of designing a fraud, green-lighting a fraud or ignoring a fraud; I don't think you need to hang too many people from the gibbet for that message to be transmitted."
Read full article in Fortune/CNN Money.
No comments:
Post a Comment