The Wall Street Journal is reporting that senior Dell executives stretched the truth (read: lied) about quarterly numbers in order to hit quarterly performance goals. The ensuing restatement of earnings will only reduce Dell's profit by $50 to $150 million, but given Dell's struggles, it's hardly welcome news.
It also points to the unhealthy demands that Wall Street may place on companies, something that Google has rejected with its "no guidance policy." Indeed, as the WSJ points out in another recent article, Google's policy of going its own way may pay rich dividends well beyond its relationship with Wall Street. But could Dell do the same?
The alternative is not pleasant. Dell's wrongdoing is non-trivial:… Read more