The general concept of the Foreign Corrupt Practices Act (FCPA) is simple: Don’t bribe foreign officials in exchange for preferential treatment, and you’re probably safe. But what if that foreign official is the ex-CEO of a subsidiary, and what if he still holds current company stock? Then, your situation just got a bit trickier.
In an opinion released on March 17, the Department of Justice (DOJ) tackled the case of one financial services company who was feeling these pressures. The unnamed firm received a request from the ex-employee to buy him out, at a better price than his original contract since the stock’s fortunes had improved. Before doing so, however, the company wanted to check to make sure they weren’t running afoul of the FCPA.