LP 2011 Compensation incentivizes but beware the Red Flags… The slippery slope Excessive pride Unheard voices of doubt An absence of checks and balances

LP 2011 From excessive compensation can come excessive pride… “hubris”: exaggerated self-pride or self- confidence, often resulting in actions taken to shame the victim, thereby making onself superior

LP 2011 Voices of doubt… “The best insurance against crossing the ethical divide is a roomful of skeptics. CEOs must actively encourage dissent among senior managers by creating decision- making processes, reporting relationships, and incentives that encourage opposing viewpoints.” – How to fix corporate governance, BW, May 6, 2002, p.78