Finally

So often, when corporations do something wrong, it’s the shareholders who pay.  The shareholder pay the fines for corporate misconduct.  While sometimes management gets moved out, seldom do they pay a financial penalty to the shareholders, who have been injured by the failure of management to prevent the wrongdoing.

So it was gratifying to see the story on page 1.  “Wells Claws Back CEO Pay,” The Wall Street Journal, September 28, 2016 A1.  The CEO of Wells Fargo forfeited $41 million in compensation, after the bank paid a $185 million fine for the illegal creation of unauthorized client accounts.

Now, there’s a business case with legs.

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Filed under Business Case, Compliance, Directors, Duty, Employees, Governance, New Implications, Oversight, Risk

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