More CEO Shenanigans


FORTUNE: CEO pay: They didn't earn it – and should return it – May. 2, 2006

I know this is a lean blog, not CEO watch, but I can't help pointing out this article from Fortune. CEO's love to talk about “pay for performance.” What happens when they get paid on fudged performance and cooked books? Mostly, they get to keep it.

The popular culture is outraged that Barry Bonds, a “cheater” is about to pass Babe Ruth. His records shouldn't count, some say.

Shouldn't we be more upset about CEO's, our corporate leaders, cheating and taking bonuses they shouldn't have been entitled to?

  • Frank Dunn, Nortel: $5.7 million bonus, overstated revenue by $1.2 billion
  • Hank Greenberg, AIG: $19.5 million bonus, overstated profit by $3.9 billion
  • Sanjay Kumar, Computer Associates: $300 million bonus, overstated revenue by $2.2 billion
  • Scott Livengood, Krispy Kreme: $1.6 million bonus, overstated profit by $22 million

The law makes it tough, in certain ways (read the article) for corporations to get the money back after the financial restatements.

Please check out my main blog page at

The RSS feed content you are reading is copyrighted by the author, Mark Graban.

, , , on the author's copyright.

What do you think? Please scroll down (or click) to post a comment. Or please share the post with your thoughts on LinkedIn – and follow me or connect with me there.

Did you like this post? Make sure you don't miss a post or podcast — Subscribe to get notified about posts via email daily or weekly.

Check out my latest book, The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation:

Get New Posts Sent To You

Select list(s):
Previous articleIntel plans to carve costs within 90 days
Next articleUnion Busting at Conn-Selmer Now?
Mark Graban
Mark Graban is an internationally-recognized consultant, author, and professional speaker, and podcaster with experience in healthcare, manufacturing, and startups. Mark's new book is The Mistakes That Make Us: Cultivating a Culture of Learning and Innovation. He is also the author of Measures of Success: React Less, Lead Better, Improve More, the Shingo Award-winning books Lean Hospitals and Healthcare Kaizen, and the anthology Practicing Lean. Mark is also a Senior Advisor to the technology company KaiNexus.



Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.