Following the payment of massive fines for unethical, and quite possible illegal benavior, the global managing partner (basically CEO) of the consulting firm McKinsey & Company has been given his walking papers.
The proximate cause is the $600 million settlement that the consulting firm
had to pay out over their truly heinous recommendations to the manufacturers
of opioids, where (among other things) they suggested that
pharmacies be paid a bounty for drug overdoses to boost sales.* (They called it, "Rebates," but it was a bounty for overdoses.)
McKinsey & Co. is, and has been for as long as I have been aware of it, an evil and corrupt organization.
The sole reason for its existence is to assist overpaid executives engaging in short sighted and destructive policies for the person enrichment of said overpaid executives. (And McKinsey & Co. partners, but that goes without saying)
When one considers the long litany of evil that they have been associated with, mass layoffs, excessive CEO pay, facilitating corruption in South Africa, assisting in setting up Trumps immigration gulags, looting Puerto Rico, facilitating the House of Saud's frequently murderous campaigns against its critics, etc.
McKinsey is a cancer on society, and if it goes the way of Arthur Andersen tomorrow, it will not be a moment too soon:
Partners at McKinsey & Company voted out the consulting firm’s top executive, Kevin Sneader, this week as it continues to face blowback over its role in fueling the opioid crisis.
The decision to deny Mr. Sneader a second three-year term as global managing partner came in a vote by more than 600 senior partners, according to a company executive. Earlier this month, McKinsey had agreed to pay 49 states a historic settlement of almost $600 million because of sales advice the company had given to drugmakers.
It is highly unusual for a sitting managing partner at McKinsey to be refused a follow-on term. The last time a firm leader was denied a second term was in 1976, according to the company’s internal history book.
Mr. Sneader, 54, did not even make it to the final round of balloting, according to the company executive, who spoke on the condition of anonymity. The final candidates for Mr. Sneader’s replacement are Bob Sternfels, based in San Francisco, and Sven Smit, based in Amsterdam. The shake-up at the prestigious consulting firm was first reported by The Financial Times.
It should be noted that McKinsey is as much a symptom as it is a cause of the ills that it is associated with, and the solution in the long run is greater accountability for businesses, managers, and consultants for the actions that they take.
As I noted over 2 years ago, studies have shown that when managers and holders of capital are allowed to skirt responsibility, whether through bankruptcies, corporate indemnity, or (as is the case of my earlier post) through changes in marital property laws, bad things happen.
If the mantra of, "Personal responsibility," and, "Real consequences," held so dear by Republicans needs to be applied anywhere, it is to the boardroom.