Last week, the drugmaker disclosed it took action after reporting an eye-opening $275 million charge for investing in sub-prime securities, which contributed to a loss in the fourth quarter. Jim Cornelius, the ceo, announced that he is now out recruiting. “I’m a big believer in accountability, and we’re looking for a new corporate treasurer and a couple of people under him,” he told Merrill Lynch conference in New York.

But one wag says that was the wrong move. In the latest Seeking Alpha column called 10Q Detective, David Phillips, says Cornelius should have fired Andy Bonfield, the cfo.

“Although the treasury department invests corporate funds, in the hierarchy of the company, the treasurer reports directly to the CFO (who has the fiduciary responsibility to analyze and review all the financial data and performance of the company),” he writes. “In other words, the ultimate responsibility of the CFO is to routinely check the corporation’s financial health and integrity. Think of it this way - if Bristol-Myers Squibb had reported an investment gain of $275 million…the individual standing front-and-center, crowing about his investment acumen would have been…Bonfield!

“But here’s a thought, maybe Bonfield could spend some of the $10,000 he receives annually for financial planning (as part of his compensation package) on an investment class, schooling him on the downside risk of investing in auction rate securities,” he concludes. Actually, page 32 of the last proxy lists $7,688 for financial counseling. However, the point is well taken. But what do you think?

 Loading ...