I can see why Rajaratnam would indulge in this, but Gupta’s involvement is kindof sad though. A guy that talented who’d worked hard as he had to get where he was was still insecure about making money enuf tto piss away his entire career. And he was not poor either.
Man, they’ll let anyone into your club.
Yeah, they let me in. That’s gotta say something.
Well, in any case, his career in the US is over. Seems reasonable that he would flee/retire to India. That McKinsey sponsorship is a bit sketchy though.
Really, you get arrested by the SEC. You disgrace your company. They publically say that they have severed ties with you. And then, they pay for you to have a golf membership and sponsor you as a corporate member.
I’m thinking there is no way this would happen in the US. I thought when the SEC so much as sends you an email security shows up at your desk with a cardboard box.
I bet I could get someone fired if I took a picture of this and sent it to dealbreaker. It’s not inside private information. It’s proudly displayed on our bulletin board in full view of the public.
Can’t speak for McK but a lot of publicly traded firms in the US keep former senior people on the dole as “consultants” and pay them a million a year out of the public eye, etc. – basically pay them to play golf and chum around. I am not surprised at all about this, but am a bit surprised they would do it in their own name. In foreign countries, the chuminess is even more overt.
I agree with Tikka’s general principle – the rules are made to be broken for people above a certain level, and generally, they do break them. Finding someone squeaky clean with really upstanding character is probably the exception.
It’s true, Bromion. Reminds me of Nixon when he said, “Well, when the President does it, that means its not illegal.”
If Gupta did this to benefit Mckinsey I could see them looking after him this way. But he was benefitting his buddy’s hedge fund.
I get it though. You want 99 percent of your employees to be honest and do things in line with company protocol. The top management though will need to make executive decisions to break the rules.
The way I look at it is I scratch your back, you scratch mine. For a company the size of McK, this cost is meaningless. Gupta, whether guilty or not, still has the ability to pull strings and send large chunks of biz to his friends and McK. They want to keep the bridge in tact, because someone of Gupta’s stature can things happen. I’m sure with a lot of these companies, former big wigs no longer actively involved still get access to corporate jets and so on. When you get to a certain level, it’s all gravy after that unless you really, really screw up. Gupta may have crossed that line (probably if he gets convicted) – at some point you’re toxic waste, but for the most part, once in the club, always in the club, including to some extent your kids. We live in a corporate-based class society. It’s pretty disgusting to hear some of my bosses hedge fund buddies talk about who they know at what school / firm / club / etc. and how they are using connections to get their kids in, but that happens. To some degree, merit is available to the highest bidder.
You should still take a picture and send it to Dealbreaker. Although this news is not completely surprising, it’s still pretty funny.