David McCann, CFO.com | US
July 31, 2008
I am confused about Doe's comments regarding a job change. Any time I have changed jobs, I had the new one before anyone at my current company even had a word of a clue. And, yes, I have had situations when my ex employer was peeved at my resignation and vowed to say less than complimentary things. My response was that I would be happy to return the favor. My favorite movie line (from a not so favorite movie) is "Everything always ends badly; otherwise it would not end." Sorry, I am just not buying the victim routine.
Posted by Anne westfall | Aug 8, 2008 10:45 AM ET
Interesting concept of a compensation insurance fund for CFO's who are forced to quit rather than perform unethical behavior. That would be a great way to ensure people can do the right thing, and still be able to survive. Of course, somebody would abuse that system, and congress would step in.
Posted by JAMES MCMONAGLE | Aug 5, 2008 8:41 AM ET
I think that a big part of the problem is that many CFO's and accountants constantly experience this surrounding unethical behavior and blackmail, although in minor doses. The minor doses of unethical behavior are the base problem because they are not large enough for anyone to pay attention. However, here is the slippery slope that teaches the unethical parties that they may just get away with it...even if going public. I can tell you, since I experienced it, that being out of work because I "fired" myself rather than lose my integrity is a VERY DIFFICULT thing to do (even though I was single and without family at the time). I then had to take a job with 50% hair cut. YES, ouch! But this happens because at the end of the day, the CFO as a job is not structured in a way to enable the CFO's to propel integrity without fear of negative consequences. Fix that Mr. & Ms. legislators, and you will have a much better system than any other country in the world. Oh, and while you're at it, get rid of SOX. SOX changes nothing but only adds expenses and bigger bills from auditors (who by the way never want to take on liability). Unethical CEO's, Sales Chiefs, Chairmans, etc. will be unethical whether you have SOX or not. Rules don't change a thing, ethical people whose livelihoods are not at stake, do change things for the better! Perhaps there should be an insurance fund paid into by anyone holding the top accounting job at any company. Then that fund would pay the base salary for up to 24 months or until that CFO finds a new job paying an equivalent amount as the prior one. Also, the fund would then have a cadre of lawyers that would collect from the "unethical" employers thus exposing them and protecting the CFO. Perhaps the SEC, with its vested interest, could also fund a part of such insurance fund.
Posted by Felix Villalba | Aug 4, 2008 5:40 PM ET
I envy people that are pure and flawless...there could never, ever be a situation where they might "compromise" there integrity. These are the lucky few.
Jesus Christ said, and of course I paraphrase, "you see the speck in your neighbor's eys but you don't see the log in yours". When the harlot was to be stoned, again Jesus said " he who has not sinned cast the first stone"
Posted by rick macchiarulo | Aug 4, 2008 9:20 AM ET
This CFO has put himself in this position because he lacked integrity and respect for himself as a professional and failed to meet his duty of care. He was driven by his personal desire and greed to further his career, with disregard for the stakeholders he has a duty to protect. If he'd had integrity and common sense, he would have put his hand up to say enough is enough and been prepared to walk away if certain conditions weren't met. Did he consult his professional body over options to address the duress he was under? Did he take a stand for himself personally and identify where the line was to be drawn in compromising his principles as a finance professional? Too many companies often pander to analysts that put pressure on short-term, quarter-driven results. that is no way to run a company for the long term for the benefit of shareholders, for employees and for customers. In the end - everyone loses out through this lack of strategic thinking.
Posted by jodiann hobson | Aug 4, 2008 6:14 AM ET
It is not an easy choice to leave a CFO job with all its perks and privileges. But a fish rots from the head down and if your management is willing (worse, demanding) actions which are in any way less than on the up and up. Leave! Immediately!
My ex-CEO will get out of Federal prison on December 31, 2011. When the SEC called me, as ex-CFO, it was much better to say that the events in question occurred AFTER I had left. Was I surprised at what eventually happened? Not really. Which is why I caught the first thing smoking while I still had a reputation and left.
The right answer to "I'll ruin you" is "we can't work under these terms." Blackmailers are never satisfied with their first payment.
All any of us has is our good name, which is built on our integrity (what we do when there is no one there to tell us what is right or wrong.) The best way to keep it, and our freedom, is to set firmly in our minds what we will and will not do, then stick to it.
There is an old vaudeville joke - "Will you do this questionable thing for a million dollars?" "Yes." "Will you do it for $5 bucks?" "Hey what kind of person do you think I am?" "We've already established that, now we're just negotiating the price."
If you're negotiating the price of your integrity, you deserve to lose everything. What is even more unfair is the number of people whose careers will be damaged as a result of associating with you. The cloud of my ex-boss ruined what should have been the best years of my career, but my present more humble occupation beats living behind bars and not seeing my daughter grow up.
see my story in CFO.Com
http://www.cfo.com/article.cfm/4443698?f=search
Maria Markham Thompson
Posted by MARIA THOMPSON | Aug 1, 2008 1:50 PM ET
Having been through a similar, though not quite so extreme, situation, I feel sorry for the guy. When you're livlihood is on the line, you're trapped.
After my experience experience I vowed never to be CFO again, at least not under any terms that didn't make me very wealthy before I started (unlikely to be met, obviously). Now, post-Sarbanes Oxley, I wouldn't touch the job.
Posted by Roland Cycan | Aug 1, 2008 10:40 AM ET
The need for core values of personal responsiblity and ethical behavior span across both public and private industry - the same rules apply.
The pressures of the street are worse than no excuse for staying in a company that has zero integrity from the top down.
For the last 28 years I have spoken on CFO ethics and believe me, you know way before the thoughts of going public occur, if the CEO and Chairman of the Board display the proper core values necessary to bring a company to market.
I find it difficult to have too much sympathy for this CFO who should have left as controller many years earlier.
Posted by DIANE DUTTON | Jul 31, 2008 7:56 PM ET
There will be a time when CFOs may become extinct, as CFO.com has said sometimes.
Also, maybe CFOs may walk around wired to record all the words they utter and are told by others. Maybe that is the only way in general that CFOs would find respect (and safety) from their bosses. And remember, after all the risk, this job is not the best paid at that level at all.
And for this ALL CFOs would need to get wired, or at least a large enough chunk of them.
I think today being a sales (or HR) guy is the safest way of walking through the sea of life.
Posted by Raj ABC | Jul 31, 2008 2:18 PM ET
walk a mile (or a quarter) in this persons shoes....then judge
Posted by rick macchiarulo | Jul 31, 2008 1:43 PM ET
...your protagonist seems to be shirking his very large part in this scheme by blaming others. If things happened as described there is no excuse for him to have played along...trying to stop, but not stopping is not a valid defense. If my physical, emotional and professional lives were at stake and I stayed so that I would continue to have a job, well...I think that indicates that more than a minor part of the problem was the CFO.
I am not excusing any wrongdoer, but when the CFO ends the story talking about the glamour of a fraudulent job its not too hard to see that they were all to blame.
Posted by STEPHEN TAYLOR | Jul 31, 2008 1:31 PM ET
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