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It has been shown repeatedly that boards won't do much and repeated fines are more and more just another cost of business. Either the fines need to be raised to
by maxxxxx 8y ago
It has been shown repeatedly that boards won't do much and repeated fines are more and more just another cost of business. Either the fines need to be raised to a level where the company loses profit for one or more years or we need to go after individuals.
- yardie 8y agoDon’t bother to fine them. They’ll just use that to punish employees and shareholders. Make the executives liable.
- maxxxxx 8y agoAgree about the executives but if the shareholders and employees feel enough pain they may actually do something. Right now the "punishment" doesn't cause anybody enough pain.
- yardie 8y agoShareholder pain will be slightly lower dividend or stock price. Employee pain will be unemployment. And I think that is what drives most of these low level fines. Regulators recognize the company wouldn't suffer in the short term from large fines.
- maxxxxx 8y agoI guess the fines will have to be much higher so the dividend is not just slightly lower. If employees knew their job is at stake they may also be less wiling to play along. I work in medical and we sometimes get pressure to cut corners but employees know that the FDA may shut down the whole thing so they refuse.
- mywittyname 8y agoShareholder can, and do, sue for damages from fines as the result of poor decisions by executives and the board.
- ghettoimp 8y agoInteresting -- are there some good examples of that happening?
- icebraining 8y agoThe board of Google (that is, Alphabet) is currently being sued by shareholders: https://venturebeat.com/2019/01/11/shareholders-sue-alphabet-board-over-alleged-sexual-misconduct-cover-up/ https://venturebeat.com/2019/01/11/shareholders-sue-alphabet...