Big Pharma Sanofi-Aventis was awarded $38.7 million Thursday as its share of a $465 million False Claims Act settlement by Mylan for knowingly misclassifying EpiPen as a generic drug to avoid paying rebates owed to Medicaid.… Continue Reading
Hardly a week passes without at least one corporate crisis in the news, often with unpredictable and long-term negative consequences, impacting not only the organization’s reputation, but also all its internal and external stakeholders.… Continue Reading
The root causes of perverse incentives often hide (in plain sight) in the most common variable compensation structures, which include payout floors, thresholds, payout caps, and stretch goals.
The seeds of the Epipen scandal, for example, were planted when Mylan’s management became eligible for millions of dollars of a one-time bonus payout if they hit 90 percent of their cumulative earnings target.… Continue Reading
We saw an interesting discussion this week on CCTV America’s news show The Heat.
It was about Wells Fargo, Mylan, and other fresh corporate scandals sweeping the country.
Our contributing editor Richard Bistrong was part of The Heat panel.… Continue Reading
Incentive compensation is making lots of news lately, but the news is all bad. Mylan’s Epipen, Volkswagen, and Wells Fargo. Ugh.
Take Wells Fargo for example. It had a reasonable goal of increasing accounts through aggressive cross selling of products to existing consumers.… Continue Reading