Alpine Summit

Friday, July 08, 2005

Shocking Revelation

So I was bouncing around the various financial news reports for today and saw this trivia question on Yahoo.

Even though former HealthSouth (HLSH.PK) CEO Richard Scrushy was recently acquitted of 36 counts of fraud, prosecutors have a pretty good track record when it comes to gaining convictions against business executives. According to a Justice Department spokesperson, over 693 executives have recently been convicted of fraud or plead guilty including high ranking officials at Tyco, WorldCom and Adelphia.

53% of those accused of wrongdoing, out of 1300, have been convicted or plead guilty. These are leaders of the country's industry! It's shameful that 693 executives in charge of people's livelihoods are corrupt or guilty of criminal activity in some way. My own take on business leadership is that these people should be role models. They should be examples of morality and trustworthiness.

Most people, myself included, thought it was more like 13%. When I think about it more though, it'd be nice to see how many executives are actually in this country. I'm guessing tens-of-thousands even hundreds-of-thousands. That would include CEO's, CFO's, CAO's and board members. So, I guess it isn't an epidemic or anything, but still, 693 executives guilty? It's just too many considering the amount of power they weild.