McKinsey & Company partners voted for Kevin Sneijder, CEO of the consulting firm, this week as it continues to counter its role in fueling the opium crisis.
According to the company’s executive, as a result of the voting of more than 600 senior colleagues, it was decided to reject Mr. Sneijder’s second term as global governance partner. Earlier this month, McKinsey agreed to pay a historic count of nearly $ 600 million in 49 states after the company advised pharmacists.
It is very unusual for a management partner at McKinsey to be denied a term. The company’s internal history book states that the last time he was denied a second term was in 1976.
Mr. Sneader, 54, did not even make it to the final round of voting, according to a company executive who spoke on condition of anonymity. The final candidates to replace Mr. Sneijder are Bob Sternfels in San Francisco and Sven Smith in Amsterdam. The Financial Times was the first to report on the shocks in a reputable consulting company.
Mr Sneijder’s tenure was initially troubled as he sought to resolve the controversy surrounding his client’s tenure during the tenure of his predecessor, Dominique Barton, now Canada’s ambassador to China. Mr. The problems with Sneijder’s calculation stemmed from the deadly opium crisis.
In July 2018, just days before his new job, Mr. Sneijder flew to South Africa to apologize to the company for working with a state electricity supplier. McKinsey’s lucrative deal, which turned out to be in violation of South African treaty law, involved the use of a local mediator in a corruption scandal that toppled the president. McKinsey has repaid tens of millions of dollars in rent earned in South Africa.
“We met as arrogant or irresponsible,” Mr Sneijder said at the time. “According to Brut, we were far from understanding the growing anger in South Africa.”
He had to defend McKinsey that month after a New York Times report revealed he was working with the U.S. Immigration Service, even amid widespread outrage over the separation of migrant children from their parents by the Trump administration.
At the same time, the fuse was lit for what became the biggest scandal in McKinsey’s 95-year history. His extensive work with Purdue Pharma “charged” the sale of OxyContin in the midst of the national opium epidemic that contributed to the deaths. more than 450,000 people in the last two decades.
On July 4 of that year, two senior McKinsey partners in the Purdue account exchanged letters discussing “it is possible to delete all our documents.” “Posts” to eliminate the company. That exchange was part of a settlement that took place with Mackenzie this month. McKinsey did not admit to any wrongdoing, but both senior colleagues who would vote for Mr. Sneijder’s successor were fired.
“We deeply regret that we did not adequately recognize the tragic consequences of the epidemic in our communities,” Mr Sneijder said this month. “With this agreement, we hope to be part of the solution to the opium crisis in the United States”
During his visit, Mr. Sneijder oversaw the implementation of measures to prevent controversial projects, including new procedures for reviewing prospective clients. But he could also be in the background of the McKinsey Stable Defender scandal, including his extensive work in Saudi Arabia, which came under scrutiny in late 2018 after The Times reported that a McKinsey employee, in a written report, has identified influential critics. Some of these critics, or members of their families, were later arrested by the Saudi government.
Mr. Sternfels, who, like Mr. Burton, was a Rhodes scholar, has led many of the firm’s technology-based initiatives and is McKinsey’s senior partner in overseeing bankruptcy restructuring practices. In recent years, this work has been the focus of litigation. In 2019, the company agreed to pay $ 15 million to settle with the Department of Justice to settle allegations that it failed to properly identify potential conflicts of interest stemming from its bankruptcy proceedings.
Mr. Smith is co-chair of the McKinsey Global Institute, the company’s in-house center.
A spokesman for McKinsey did not comment on the specifics of the election, saying in a statement: “The election, which is being conducted by independent third-party firms, is now taking place and we will announce the outcome after the election.”
Walt Bogdanich contributed to the report.