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Incentive alignments for chief executives are critical in managing the agency gap between owners and managers of the firm.
Franklin traded for his own accounts and that of Lyford Cay, a hedge fund he managed at Bear Stearns whose investors were several senior managers of the firm, according to the SEC.
Two days after legal documents were filed in the Hoffman case on July 14, law enforcement officials raided the firm, freezing the firm's assets as well as those of its managing partner, Marc Hoffman, and the two non-lawyer managers of the firm, Michael Harper and Benn Wilcox.
But much of the blame for Andersen's fall must be given to the managers of the firm in recent years.
As high-ranking managers of the firm, his co-defendants have prominent lawyers, whose fees are being paid by Dewey & LeBoeuf's insurance carrier.
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Yet the managers of the firms they invest in do it all the time.
They also regularly badger managers of the firms whose shares they own.
F.B.I. agents arrested former brokers and managers of the firms yesterday in New York, New Jersey, Florida and California.
This literature assumes that regulators know the cost schedules facing companies, when in fact that information is often known only to managers of the firms.
A manager of the firm has been questioned.
Those employees include Christy Vavra, who was manager of the firm's treasury operations.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com