Week 10 Topic - Organizational Controls: Golden Parachutes

Week 10 Topic - Organizational Controls: Golden Parachutes

Background: A few years ago, companies such as AIG, who had a hand in the cause of the economic downturn that has devastated our economy, were planning to give or actually gave out huge golden parachutes to the same executives who led and approved of the companies actions.

Instructions: Please answer the questions below:

1) Perform a search of a CEO who has received a golden parachute.

1a) Who was the CEO?

1b) What was the company from where he or she received the golden parachute?

1c) What was the total compensation in the golden parachute?

1d) What happened to the company after the CEO's departure terms of before and after revenue?

1e) After the CEO's departure, did the former CEO obtain a leadership position at another firm?  If yes, what company.

2) Based on your reading of Chapter 10 of your DLR e-text, do you believe the payment of these golden parachutes was ethical, right or wrong, and why?  Please be substantive in your answers.

Notes:

1) Do not use Carl Icahn or Michael Corbat from Chapter 10 of your e-text, as examples of CEOs who have received golden parachutes.

2) Use academically credible sources.

3) Be sure to relate your post to Chapter 10 of your e-text and/or other credible source(s) with proper APA in-text citations and References listing.  Failure to properly cite sources will result in a zero.

Problem Description

Following the attacks on 9/11, many online news Web sites faced an increased number of connections from people trying to know the latest development of events. This augmented traffic quickly brought nearly every news site down, and CNN.com was not immune.

On September 11, in approximately 15 minutes, CNN.com served over 132 million pages, nearly equaling the site's all-time high. One of the biggest challenges faced by the response team was induced by cascading failures, so that increasing capacity alone was not sufficient to resurrect the site.

CNN Internet Technologies’ William LeFebvre was invited to LISA 2001 to give a talk about the effects of the 9/11 attacks on CNN’s Web site and the efforts the response team did to keep the site up and running.

Read a summary of LeFebvre’s talk at https://www.usenix.org/conference/lisa-2001/cnncom-facing-world-crisis (Links to an external site.) 

 Then, using your knowledge of disaster recovery and business continuity, answer the following questions:

• What happened with CNN.com on September 11 2001?
• From a technical point of view, what were the reasons for the problem you described on the previous question?
• What did the CNN.com’s team do to minimize the impact of the problems?
• Was the disaster recovery and business continuity plan effective or were the reflexive responses from the team primarily responsible for the results?