STAMFORD, Conn., Dec. 18, 2013 /PRNewswire/ — When vetting chief executives or other top hires, the pain of skimping on background checks far outweighs any extra cost for doing it right. That's the view of Chris Procopis, President of LexPro Research, a background investigations firm, and he's got plenty of examples to back up his comments.
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"You need to thoroughly vet CEOs," he said. "It's absolutely critical to do your homework."
How bad can it get if you don't do proper background checks? Pretty bad if you were a New York Islander hockey fan in 1996 when the struggling team was sold to John Spanos. The Dallas executive promised a return to glory, but hopes were dashed in 1997 when Newsdayexposed him as a fraud who did not have the assets to complete the deal, lied about his net worth, and had two lawsuits pending against him.
"That was one for the books, but there are scores of other notable examples," said Procopis. Yahoo CEO Scott Thompson was recently caught padding his resume. Resume errors ("fibs") also did in former Radio Shack CEO David Edmondson and Veritas CFO Kenneth Lonchar.
Then there's football coach George O'Leary. In 2001, he left Georgia Tech to become head coach at Notre Dame. Major errors on his bio included where he earned his Master's degree and the letters he received in football. Notre Dame fired him shortly after the inaccuracies came to light.
Commenting on the situation, O'Leary said his "resume padding" followed him throughout his career. As Procopis noted, "Apparently no one dug deep when checking his credentials. This happens a lot with job changes. The current employer assumes that the previous employer checked things out."
Procopis added that in all of these situations the reputation of the institutions and individuals was damaged. "It's painful and embarrassing for them, and it doesn't have to happen," he added.
Due diligence is vital in the hiring process and also during mergers and acquisitions. Particularly important are in-depth background checks on the key executives involved in the deal.
LexPro Research is a leading provider of domestic and international risk mitigation background checks, and business intelligence services to the corporate, financial and legal communities. For information, call 203-921-1281 or visit www.LexProResearch.com.
Contact: Rob Rieger
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