21 March 2014
A hard-charging CEO takes the helm of a struggling company, shakes up staff, and spends a fortune acquiring an offshore electronics company with sketchy books and senior executives who spend time palling around with a local government leader. Sales shoot through the roof, albeit under somewhat suspect circumstances, and the CEO and his team reap enormous bonuses. But before long police are kicking in the doors of their acquisition, looking into allegations of bribery. One senior official is arrested. The share price of the parent company plummets.
This is the Plot line for A Price Worth Paying? a corporate crisis drama movie from Dechert LLP that will be shown at the ICSA Annual Conference on the 13 May 2014. It demonstrates how important it is for boards of directors to monitor all risks affecting their companies and for boards to react in the right way when a crisis strikes. The movie focuses on the difficult issues of executive compensation, the evaluation of risk around an acquisition in an emerging market, the depth of enquiry of an Audit Committee and the adequacy of the response to a serious whistle blower allegation. It reinforces the importance of setting the right “tone from the top” and the importance of directors asking all of the right questions.
During this Conference session our panel of experts will examine and interact with the audience on the legal and ethical questions raised by the film. Delegates will analyse the subtle but often momentous choices faced by boards and be asked to consider the potentially disastrous consequences of poor decision-making and lack of due diligence.