Fcpa Compliance Report

What is the role of a Board of Directors in hiring senior executives, Chief Compliance Officers and even other Board members? I recently explored this issue with Candice Tal, founder and CEO of Infortal, a global security and risk management consulting company. Tal began by noting, that a bad senior executive hire can cost a company much more than simply dollars. She noted, the “financial costs in day-to-day operations easily can quadruple that of a regular employee, but it can also impact the company’s corporate governance and Board of Directors if that executive hire was found to be involved with unethical and illegal activities. Not even a signed contract can protect a company if an executive hire’s unethical actions come to the attention of the national media. Fiduciary risk and exposure for the board of directors cannot be overlooked.” She pointed to the example of Yahoo! and its hire of Scott Thompson back in 2012. It turned out that Thompson had incorrect information on his online biography regarding h