Restricted stock awards also would fully vest immediately upon his death. The company’s pay practices earned the company a failing grade from The Corporate Library, an independent corporate governance research firm.  The compensation awarded to Toll rated a “High Concern” from The Corporate Library.  Even as the company lost $297.8 million for the fiscal year ended Oct. 31, 2008, Toll received $8.8 million in total compensation for the year. That’s twice as much as the $4.6 million median compensation for
Bank Of America’s acquisition of Merrill Lynch Along with the fire sale of Bear Stearns and the bankruptcy of Lehman Brothers, the rescue of Merrill lynch confirmed the worst fears about the financial crisis. After a weekend of whirlwind deal-making, Merrill Lynch had sold their troubled brokerage firm to the Bank of America Corporation, dodging the financial sinkhole that was swallowing Lehman Brothers. As per some current and former Bofa executives and employees, the merger was really messy. On Saturday, September 13, Ken Lewis (Bofa CEO) and John Thain(Merrill CEO) met to discuss a strategic relationship. Thain proposed a 10% percent minority investment in Merrill, but Lewis wanted complete acquisition.
Not for good reasons though. The company had earned the dubious distinction of being involved in the largest accounting scandal ever to hit the US corporate history. WorldCom had reportedly misrepresented its financial statements to an extent of around $ 4 billion. The company admitted that it had resorted to fraudulent accounting practices for five quarters (four quarters of 2001 and the first quarter of 2002). Soon after, WorldCom terminated the services of some of its top executives including Scott Sullivan (Sullivan), the Chief Financial Officer and David Myers, the Senior Vice President and Controller.
Business Ethics Homework 6 20 March 2013 GlaxoSmithKline Case 1. Since 2005, GSK was hit with several severe lawsuits regarding product liability. When Andrew Witty was assigned the chief executive role of the company, post-merger, the ice of shares declined 50 percent, which harmed the company’s earnings, sales and reputation. The first ethical lapse came about when GSK was criticized for selling drugs to the public without informing its buyers of the detrimental side effects. The detrimental product was Paxil, designed to relieve depression, generated disastrous side effects such as addictive behavior and birth defects.
On June 26th of 2002 the truth behind Ebbers and WorldCom went public. Ebber’s was convicted of an 11 billion dollar accounting fraud at telecom. On March 15th of 2005 Bernie Ebber’s ended up being guilty of conspiracy and security fraud. Ebber’s knew right from wrong and he ended up causing the biggest bankruptcy in history. The sympathy lies within the victims for the loss of 30 million dollars all together.
1. Problem Statement & Objective The Great Atlantic & Pacific Tea Company, Inc. (A&P) suffered from continued loss on the net income from 2000 to 2003, which caused a general concern on its high risk of bankruptcy. However, conflicting with analysts’ estimation, the company’s third-quarter financial results surprisingly exceeded their expectation, and stock price rose 23% to $9.28 per share on six times average daily trading volume. Our objective is to dig out more information from A&P’s financial reports and make suitable recommendations to investors/analyst/debt holder through further analyzing its business strategy and financial ratios by the end of 2003. 2.
When the company’s management team attempted to conceal those large credit losses, the SEC and other federal regulatory authorities uncovered the scam. By 2003, the once high-flying Internet company was bankrupt and its former officers were facing a litany of federal charges. The San Francisco office of Ernst & Young audited NextCard’s periodic financial statements. When the news of the federal investigations of NextCard became public in the fall of 2001, Thomas Trauger, the
The infamous Tyco scandal began to unfold in 1999 when the Securities and Exchange Commission (SEC) was conducting a probe. Some of Tyco’s business practices raised concern. Subsequently, the SEC initiated an inquiry. In 2002, the questionable accounting practices came to light. The company had forgiven millions of dollars in loans and granted excessive bonuses to executives.
Introduction On September 15, 2008, Chapter 11 bankruptcy protection was filed by the Lehman Brothers Holdings, Inc. This bankruptcy case was not only the largest in the history of the United States, but it occurred after continual reassurances from the firm’s chief executive officers that assets were strong, liquidities were soaring, and leverage was controllable (Leynse, 2009). The collapse of this company devastated consumer confidence at a time of instability, and during its implosion, many debatable outcomes came forth. The disintegration of the housing market bubble and the subsequent financial crisis were followed by the severest economic downturn since the Great Depression. In 2007, the defaults of subprime mortgage industry reached its peak.
In November 1987, new owners takeover the company uncovered the $65 million shortage of inventory, which led to bankruptcy. The SEC investigation revealed that, Antar ordered employees to overstate the inventory which led to overstate the gross profit. Also he asks them to understated the account payable and to destroy the computer based inventory system designed by the Main Hurdman and to return to the outdated manual inventory system. Several key accounting employees was involved on the scandal, including the director of the internal audit staff, the director of accounts payable and the acting controller. Audit issues • Objective of year-end inventory cutoff tests, Visit the stores without prior acknowledgement of it and check the inventory in place to detect the fabrication of inventory count • Contact the vendors, suppliers, creditors, etc.