The phrase suggests that the law’s purpose is to provide incentives to shady characters to falsely claim that their companies are misbehaving in order to collect hefty payouts for blowing the whistle.
Dodd-Frank, as effective or flawed as one believes it is, did not arise out of thin air. It was written in response to some lousy behavior that caused a lot of pain to many citizens’ personal wealth (and still does, thank you very little).
Worse, this phrase fuels the thinking that business regulation arises out of thin air as a way for regulators and legislators to inflict pain and suffering on companies while gleefully hampering the overall competitiveness of the United States.
Come on.
Dodd-Frank is much more than a “government initiative that establishes rewards for corporate whistleblowers” (as I’ve seen it portrayed by folks pitching some type of Dodd-Frank compliance services). The term “corporate bounty hunter” – a term that my search does not find in the actual text of the law (and please let me know if I’m missing a mention) – helps let past instances of bad behavior off the hook.
Enough ranting. Let’s take a more realistic and practical look at the way whistleblower activity is trending, based on a small survey of 51 executives (most, but not all, of whom work at publicly listed companies). The survey Big Fat Finance, conducted by law firm Littler Mendelson, includes the following findings:
I’m seeing far too many instances of the phrase “corporate bounty hunter” used in conjunction with the whistleblower provisions of Dodd-Frank.
I’m curious (as I’m sure you are): how does current whistleblower activity compare with pre-Dodd-Frank whistleblower activity? I’m looking into that comparison. Regardless of what I discover, however, the case for painting Dodd-Frank as some sort of conspiracy to reduce U.S. competitiveness remains weak.
• The majority of respondents are either very concerned (27 percent) or moderately concerned (69 percent) about potential whistleblower claims;
• Forty-five percent of respondents say their companies experienced a whistleblower claim in the last 12-24 months and 67 percent anticipate whistleblower claims to increase within the next 12-24 months; and
• Sixty-five percent of respondents feel their companies are only moderately prepared to handle whistleblower claims and only 54 percent are confident that management understands unlawful retaliation concepts. However, companies are stepping up management training with 59 percent either conducting training in the next 12 months or planning to do so.
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