Question: 1. Is it right that a CEO can direct the charitable donations of his company to the charity of his choice? 2. Comment on the

1. Is it right that a CEO can direct the charitable donations of his company to the charity of his choice?
2. Comment on the ethical aspects of Pierre’s stock option/stock donation strategy.
3. If you were Gloria, what should you do? Would this change if you were a donations specialist, a lawyer, or a professional accountant?

Pierre Garvey, the CEO of Revel Information Technology, sat back in his chair and looked at his assistants. He frowned. “My son has been diagnosed with MLD,” he said. They all looked at him with shock. “Its proper name is metachromatic leukodystrophy and its caused by an enzyme deficiency that will eventually destroy his nervous system.” “I’m so sorry, Pierre.” “That’s awful.” “Oh, my God! Is there anything that can be done?” They all spoke at once.

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1 There is a separation between ownership and control The shareholders own the firm but they delegate running the business to the CEO As such the shareholders give a great deal of discretionary power ... View full answer

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