The Return of Sherlock...

It seems that blogging is now quite a common hobby for retired senior pharma executives. A little while back we were treated to a wonderful series of "No Shit,Sherlock" observations from fledgling blogger and Pfizer's ex-R&D head honcho, John LaMattina.

And now no less a person than Ray Gilmartin, a former CEO of Merck, has joined the ranks of pharma bloggers and has been pontificating about the "flawed beliefs of CEOs."

Here's what he has to say:

"Most CEOs and corporate board members would agree that the theories and beliefs listed below drive their decision-making on how best to meet the challenges they face:

•The focus of the CEO and the board should be on maximizing shareholder value.

•The stock market is short-term-oriented.

•Stock-based incentive compensation aligns the self-interest of management with shareholders, and a performance-based pay system increases employee motivation.

•Societal concerns should be addressed through corporate social responsibility programs.

•The "best athlete" from inside or outside the company should be chosen as the successor to the CEO.

In my experience, these beliefs have led managers and boards to take actions that have had unintended, destructive consequences. When observing the behavior of management and corporate boards, when reading the management literature and the business press, and when assessing the outcomes of management behavior, it seems as though CEOs are recognized and rewarded handsomely for downsizing and outsourcing, acquiring or merging, and making the quarter — all justified by the responsibility to maximize shareholder value.

...My concern is that these actions have become the standard by which CEOs are expected to manage. Furthermore, these actions are taken seemingly without regard to the consequences for the community, the employees, the survival of the company as an institution, or the creation of long-term firm value..."

Well, truly another "no shit Sherlock" moment indeed, methinks.

Ed Silverman's piece for Forbes points out that Mr. Gilmartin's memory appears to be somewhat self-servingly selective.  And without even mentioning the "V" word.  Or other words, such as "breathtaking hypocrisy", or "chutzpah."

Many people believe that all modern CEOs of big corporations are totally bereft of any social conscience, and are not in the least concerned with being perceived as hypocritical sociopaths and shameless liars. 

I don't subscribe to that belief.  Instead, I reckon that they simply have a Messiah complex.  Modern CEOs genuinely believe that every word they utter is the truth.  "I Have Said It, So It Must Be True.  I Am Perfect.  It Is Reality That Is Flawed..."

Snigdha Prakash's wonderful book, "All The Justice Money Can Buy" has much to say about the corporate morality of Merck in the wake of the Vioxx disaster.

And here's what the man who presided over this disaster had to say...

"...the primary value of this company is the patient comes first. And that was best expressed by the modern day founder, George W. Merck in his--in a speech to--to a medical school in 1950 in which he said that medicines are for the people, not for profits..."

Yeah, OK.  Anything you say, Ray...