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I'm glad to see the verdict and a relatively severe sentence handed down (I expected 6-12 months). What Mike did was indeed unethical and fraudulent. It's also
by skuhn 5y ago
I'm glad to see the verdict and a relatively severe sentence handed down (I expected 6-12 months).
What Mike did was indeed unethical and fraudulent. It's also extremely foolish and shows poor judgment on his part -- his role at Netflix was to lead the organization to identify and implement the best solutions for the company and its customers. Instead he saw the opportunity for short-term personal gain at the company's expense, and by doing so he jeopardized his lifetime earnings potential that would have been many times greater. I hope this sends a message to anyone else in his position that there can be consequences.
I've been responsible for tens to hundreds of millions in annual expenditure, and to even have the appearance of vendor favoritism (let alone kickbacks, bribes, payoffs) is anathema to me. I have vendors that I like to work with because they do good work and they help me to make things happen, but even my favorite vendor is evaluated and earns the business on the merits every single time.
I have declined seemingly innocent gifts from vendors (and notified my management). I always turn down things like sports tickets and paid trips. I do let vendors pay for the occasional lunch, but only up to a point that I feel comfortable. Maintaining my independence is absolutely key to my role and my career.
I've also worked at places where even a paid for lunch is not acceptable. That won't influence my decision-making one iota, but if those are the rules then I follow them.
Not everyone does that, but I don't know anyone in the industry who thinks Mike's behavior is OK. Anyone working for me who made unjustifiable decisions with vendor agreements would make me re-evaluate their position -- and if I found a pattern along the lines of Mike's behavior, they would be dismissed and sued just like him.
- herodoturtle 5y agoThis is both an insightful as well as an important comment. Thanks for sharing it. Readers of HN should take note - especially young up-and-comers.
- dano 5y agoThis kind of full disclosure is terribly important to build and maintain trust in an organization. I've even go so far as to disclose my investment portfolio to the CFO and clarify the purchasing decisions when there is overlap. Back in the day my budget was in the ten's of millions and it wasn't uncommon to make a $1m purchase of servers and storage. The moral ambiguity of accepting something in turn for making a buying decision is really beyond the pale. Thank you for your great post.
- skuhn 5y agoYou make a great point: there are other potential sources of conflicts besides vendor kickbacks, and they all need to be handled with care. It isn't always feasible, but when I'm faced with a decision where my judgment may be (or at least appear) compromised, I like to assemble the details and let my team or my management make the call. Nothing in life happens 100% without bias, but I think this helps to build trust in a similar way to your disclosing of financial ties. The industry is quite small in a lot of ways, and reputation is everything. If people sense that you aren't trustworthy, you may still be able to find work -- but everything will get harder. I'm glad to hear that you see value in professional trust as well and take the steps to earn it and keep it.