CGRI Case Studies

Case studies by Stanford GSB faculty that illustrate concepts and lessons in corporate governance.

Cases Opensearch
Research Focus Area
Results for
CG18

Baker Hughes, Foreign Corrupt Practices Act

David Larcker, Brian Tayan
2010

In 2002, Baker Hughes was accused of violating the Foreign Corrupt Practices Act (FCPA). This case describes the actions taken by the company in response to those accusations. These include hiring a third-party law firm to undertake an independent…

CG20B

Sharks in the Water, Battling an Activist Investor for Corporate Control (B)

David Larcker, Brian Tayan
2010
This case is a follow up to CG-20A, and explains the actions taken by Tarco in response to threat from activist investor Barracuda. The case explains how the company relied on an analysis of its shareholder base and predictive proxy voting to inform its…
CG19

Equity on Demand, The Netflix Approach to Compensation

David Larcker, Allan McCall, Brian Tayan
2010

Netflix was among a small group of Silicon Valley companies to emerge from the technology bubble of the late 1990s a clear winner in terms of growth, market share, and profitability. That Netflix was able not only to prevail over this competition but also…

CG20A

Sharks in the Water, Battling an Activist Investor for Corporate Control (A)

David Larcker, Brian Tayan
2010
In July 2006, Barracuda became the largest investor in Tarco International. In a meeting with management, Barracuda’s managing director advised that strong measures needed to be taken to improve operating performance. If management failed, Barracuda…
CG21

Multimillionaire Matchmaker, An Inside Look At CEO Succession Planning

David Larcker, Brian Tayan
2010
This case takes an inside look at CEO succession planning at Energy Corp. The case provides an overview of various models of succession planning, including external search, COO appointment, a horse race, and the inside-outside model. The case then…
CG17B

Royal Dutch/Shell, A Shell Game with Oil Reserves - Governance Overhaul After Scandal (B)

David Larcker, Robert Lawson, Brian Tayan
2009
Following the revelation that the Royal Dutch/Shell Group of Companies had overstated its proved oil reserves by over 4 billion barrels, company officials announced dramatic changes to the company’s organizational structure and governance system. These…
CG17A

Royal Dutch/Shell, A Shell Game with Oil Reserves (A)

David Larcker, Robert Lawson, Brian Tayan
2009
In January 2004, the Royal Dutch/Shell Group of Companies announced that it would reduce its estimate of proved oil reserves by nearly 4 billion barrels, or 20 percent. The announcement set off a series of events, including a drop in the company’s share…
CG13

Attention Shoppers, Executive Compensation at Kroger, Safeway, Costco and Whole Foods

David Larcker, Brian Tayan
2008
Retail grocery sales represent a significant portion of the U.S. economy. The industry was highly competitive, with companies operating on low gross and net margins. As a result, grocery stores were generally under significant pressure to reduce their…
A198

Financial Restatements: Methods Companies Use to Distort Financial Performance

Madhav Rajan, Brian Tayan
2008
Over the last 10 years, the number of publicly traded companies that have had to restate financial results has risen dramatically. Regardless of whether the restatements stemmed from the aggressive application of accounting standards or the need to…
CG11

Models of Corporate Governance. Who's the Fairest of Them All?

David Larcker, Brian Tayan
2008

In 2007, corporate governance became a well-discussed topic in the business press. Newspapers produced detailed accounts of corporate fraud, accounting scandals, excessive compensation, and other perceived organizational failures—many of which culminated…