‘Recklessness, hubris and greed’ – Carillion slammed by MPs (2018)

“[Board members]…presented themselves as “self-pitying victims of a maelstrom of coincidental and unforeseeable mishaps””

Rob Davies, business reporter, Guardian.
Guardian, 16 May 2018
Image: The Paradise Birmingham site after the collapse of Carillion. Credit: Elliot Brown / (CC BY-NC-SA 2.0)

Select committees accuse directors of putting their own rewards ahead of all other concerns.

“Carillion collapsed as a result of “recklessness, hubris and greed” among directors who put their own financial rewards ahead of all other concerns, according to an excoriating report into the firm’s demise that spreads the blame between board members, the government, accountants and regulators.”

“…Directors prioritised senior executive bonus payouts and dividends for shareholders even as the firm neared collapse, while treating pension payments as a “waste of money”.”

“Frank Field, who chairs the work and pension committee, said: “Same old story. Same old greed. A board of directors too busy stuffing their mouths with gold to show any concern for the welfare of their workforce or their pensioners.””

“…Internal auditor Deloitte had failed to identify “terminal failings” in risk management and financial controls, or “too readily ignored them”.”

““They are guilty of failing to tackle the crisis at Carillion, failing to insist the company paint a true picture of its crippling financial problems…””

“The report by the two committees placed most of the blame on the company’s “myopic” board…”

“The trio presented themselves as “self-pitying victims of a maelstrom of coincidental and unforeseeable mishaps” including contracts in the Middle East that went sour. In fact, the committees found, the company’s problems were far more deep-rooted.”

Read the Guardian article here: ‘Recklessness, hubris and greed’ – Carillion slammed by MPs‘