Daily Archives: January 8, 2010

John Gapper

On the front of the McKinsey & Co website is a link to a McKinsey Quarterly article titled Motivating People: Getting Beyond Money.

It is a good topic, for the biggest question about the involvement of Anil Kumar, a McKinsey director, in an insider trading ring allegedly headed by Raj Rajaratnam of the Galleon hedge fund, is why he put his own reputation – and that of the firm – at risk for $2.6m.

Mr Kumar has agreed to forfeit this money, which is said to have been paid to him in return for providing inside information on companies he gleaned through his work at McKinsey, and apologised in a New York court for the “shame and embarassment” he caused his colleagues.

It is a shocking incident for McKinsey, like other blue chip advisory firms such as Goldman Sachs, depends on being trusted with its corporate clients with confidential information. Read more