Tech's Kickback Economy
from the legal,-but-unethical dept
Business Week has an article about the rampant “kickback culture” in the tech industry where executives at major tech companies would do deals with certain companies in exchange for personal stock allocations. The practice of investment bankers giving IPO shares out to other company execs isn’t new, but this goes much further. Companies would do deals involving inferior technology, just because the company selling that technology lined the top execs’ pockets. Business Week was surprised to find out just how rampant this practice was. However, more importantly, they were surprised to see that it’s still going on today, despite the tech bust. They even suggest that, for some people, the only way to get them to return your calls is to give them some stock.