We just found a case study for you to use as a lesson in facial recognition. By their faces you may know them – the CEOs, that is. When CEOs get busted for unethical or illegal business behavior, look at their pictures in the news stories about them. Or you may find photos on their company websites.
Today’s Houston Business Journal headline is: SEC Charges Houston CO & CEO w/Fraud. . We have no idea whether the SEC’s charges are correct. Often CEOs don’t agree with the Security and Exchange Commission.
The photo above is a picture of the CEO at the Houston American Energy company’s website. You decide. Check out the company’s Board of Directors. What do you think about them?
For a head start, this is an “oil exploration and production company.” Oil exploration is on a par with the gold and diamond mining industry. All are businesses with assets that are hard for outsiders to verify.
Now you need to do more research – read the CEO’s letters to shareholders in the annual report, google them, check their backgrounds, but this is a good quick start. If you possibly can, attend an annual meeting. IFO has learned more at annual meetings than from any other type of due diligence. After some practice you will be able to “read” the faces with adequate accuracy.
If the face says “crook” or possible “crook” or even questionable IQ, you can just stop looking at the company the CEO runs. But you need lots of practice.