September 19, 2006

A Corporate Nanny Turns Assertive

Law professor Peter Henning is quoted in an article about an independent federal monitor who is serving as a watchdog in the aftermath of an accounting scandal at Bristol-Myers Squibb. Such monitors are often appointed under deferred-prosecution agreements - an increasingly popular way to deal with corporate crime. Three years ago, in a move to blunt the federal investigation, the CEO of the company hired as an adviser a former judge who is respected by the federal prosecutor in the case. Now the former judge, who currently serves as a court-authorized overseer of the company's activities, has convinced the Bristol-Meyers board to dismiss the CEO who originally hired him. Henning said business executives would regard the situation as a worrisome sign that government prosecutors are reaching too far into the corporate boardroom.

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