An examination of the park doctrine and pharmaceutical executive accountability for regulatory noncompliance
Mathews, Marie Franklin
MetadataShow full item record
This paper investigates whether or not top officials face repercussions when their leadership results in serious violations of the Federal Food, Drug, and Cosmetic Act (FD&C) in the pharmaceutical manufacturing sector. This research studies if chief executive officers (CEOs) or chairman of the board (COB) of parent companies of pharmaceutical firms experience job turnover as a result FDA injunctions or consent decrees against their subsidiaries or primary unit. This research shows that while some CEOs did turnover in the study period, there were other reasons that contributed to the turnover such as mergers and acquisitions, the filing of criminal charges by FDA or another agency, and/or the filing of Securities and Exchange Commission (SEC) charges. A small number of the cases reviewed resulted in CEO turnover due to economic or other consequences of the FDA action, and also that a high number of the firms had CEO and COB positions combined.