News for hackers. Stuff that matters.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by INTPenis on Wednesday May 05, 2021 @07:17AM (#27048507)
That title is funny. I work at big nameless european telco and for the last 10 years that's exactly how I perceive the whole culture here.

Some higher up, either the CTO, CIO, or close to those roles, gets a pamphlet about some shitty product. And without listening to anyone buys it and forces all us techs to use it for a year or two before they move on to the next shitty product.

In one case we even had a CTO force a shitty product on us, speak very highly about it, only to quit and take a position at the vendor of the shitty product.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by TheRealDunkirk on Wednesday May 05, 2021 @08:29AM (#27049032)
I had a grand-boss who proposed buying an add-on to our PDM system. I explained how we already threw away $15 MILLION on buying ALL the licenses for a previous PDM system up front, only to scrap it when our company got taken over (and pillaged and destroyed, but that's a story for another day). I BEGGED him not to spend the money until we proved that we could actually, you know, integrate the add-on, and USE it successfully. No, of course, we spent all the money up front. And THEN found out that we couldn't use it. And then I heard he got a big kickback from the company, and I because a little less naive, and a lot more jaded.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Chris2048 on Wednesday May 05, 2021 @11:04PM (#27058724)
> then I heard he got a big kickback from the company

sounds like a good case for whistleblowing

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by krageon on Thursday May 06, 2021 @07:03AM (#27061467)
Don't whistleblow unless you can work in an entirely different industry where nobody knows you (and nobody reads the news). Or of course you can do so entirely anonymously.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by TheRealDunkirk on Thursday May 06, 2021 @09:20AM (#27062776)
I had already learned my lesson. My company had instituted an ethics hotline a few years before. Someone I knew actually had the guts to point out a large-scale graft, and... nothing was done about it. So I didn't bother.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Chris2048 on Thursday May 06, 2021 @10:14AM (#27063520)
I didn't mean some internal thing, doesn't the SEC give % rewards to whistleblowers?
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by knuthsat on Wednesday May 05, 2021 @07:25AM (#27048547)
Yeah, the same thing in European banks. It gets quite obvious when executives in local branches start pushing for shitty products.

When I started working professionally, I always thought that eventually the best product wins. Then I was struck with this kind of reality, where the product with the biggest people network wins.

Similar thing ended up being true for me. Without a good support network, I won't end up anywhere even if I have above average abilities.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by toyg on Wednesday May 05, 2021 @08:37AM (#27049110)
This also works in reverse. If you build an extensive ecosystem of "partners", then decide to cut them off, chances are these people will move on to something else and take customers with them, cutting you back to size. (Oh hai Oracle, I definitely wasn't talking about you, nope, nossir...)
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by ahartmetz on Wednesday May 05, 2021 @11:43AM (#27051366)
Haha. In contrast to that, SAP is known for being very cooperative with SAP consulting firms - I guess that is part of their success.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Blikkentrekker on Wednesday May 05, 2021 @08:00AM (#27048805)
I find this to be an interesting thing about reading the Torvads–Tanenbaum debate, that both sides seemed to assume without much consideration that the best instruction set, and product in general, would always win.

With instruction sets in particular, there is a very large amount of inertia.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by kjs3 on Wednesday May 05, 2021 @06:27PM (#27056617)
To be fair, Tanenbaum is an academic and Torvalds was not that far out of college. It's easy to be idealistic like that when you haven't been jaded by experience in the real world.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by sdgasg on Wednesday May 05, 2021 @11:36AM (#27051266)
This is so common, we even have ethics training at our mega tech corp and we are supposed to report any such activities. A lot of time kickbacks are subtle though like unpaid internship at vendor for CTO's niece. Or sometimes it is a bit more bold like a consulting contract that vendor need to sign up with CTO's brother's firm etc.

The most obvious and legal form of kickbacks is just regular sales process that involve a lot of nice dinners or even trips to conferences on nice resorts. One of my old boss owned his company and it was so normal for him to go out for 4 hour lunches with clients.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by EveYoung on Wednesday May 05, 2021 @12:14PM (#27051828)
In recent years, I've noticed that more and more vendors offer quite lavish "training" events for the tech teams evaluating their products. I'm sometimes still surprised by the type of questionable practices that are common in otherwise highly regulated industries.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by lastofthemojito on Wednesday May 05, 2021 @08:39AM (#27049119)
Yep. Alternate headline: "Netflix IT exec chose products using standard industry practices".
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by amelius on Wednesday May 05, 2021 @07:25AM (#27048548)
It also sounds similar to how physicians prescribe medicines.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by pessimizer on Wednesday May 05, 2021 @07:48AM (#27048720)
https://projects.propublica.org/docdollars/

https://www.frierlevitt.com/articles/service/pharmacylaw/pha...

> Last month, the United States Department of Justice (DOJ) announced a $39 million settlement agreement with pharmaceutical company, Daiichi Sankyo, Inc., resolving allegations that the company submitted false claims to federal healthcare programs by paying kickbacks to physicians to induce them to prescribe drugs. The DOJ alleged that Daiichi violated the Anti-Kickback Statute by disguising kickbacks as legitimate business engagements. Specifically, Daiichi engaged physicians as participants in various speaker programs, offering honoraria, payments, meals and other remuneration in return for the physicians’ services. The settlement agreement highlights the following activities which the DOJ found particularly offensive:

> 1. Honoraria was paid where recipient spoke only to members of his or her own staff in his or her own office.

> 2. [...]

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by DesiLurker on Wednesday May 05, 2021 @11:35AM (#27051253)
that doc dollars is interesting, propublica does good work.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by varispeed on Wednesday May 05, 2021 @08:09AM (#27048880)
Not sure why people downvote it? Just because you don't like to hear it, it does not mean this is not happening. Doctors get paid cash and hospitality benefits (and in my country they don't even have to declare it). Pharma companies get sales reports from regions and reward doctors based how given region performs. Nothing is done about it, because pharma pays well to maintain the status quo.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by programmertote on Wednesday May 05, 2021 @08:46AM (#27049179)
It seems like there are quite a lot of relatives/family members of doctors on HN. My wife is a doctor (and she hates most f what she sees in the way the medical field is run/operating these days), but I try to be impartial about judging them. The general emotion toward doctors on HN or any other Reddit forums is like they can't do no wrong or they are not evil or that they are smart (smarter than average) people (example that I just ran across today on Reddit's front page: https://i.redd.it/bjhk6ozyj7x61.jpg). That assumption/belief is very different from the reality. After observing and hearing so many stories about doctors (I have quite a lot of doctor friends/acquaintances in the US), my conclusion is that most of them are complicit in some of the things that is wrong with the US medical system these days.

A quick anecdote - my wife used to volunteer at a clinic in Chinatown. The doctor always get invites for lunch/dinner from medicine companies and she'd sometimes invite my wife to attend. I was extended an invite to one of them (the doctor knows me via my wife). It was hosted by a rep from Sanofi for the staff of the entire clinic (about 6 people) plus their SOs (including myself and the doctor's husband). There were a total of ~10 people at the dinner and the doctor gets to pick the restaurant so she picked one of the most expensive hotpot restaurants in Chinatown. We ordered lots of grade A beef slices and other expensive goodies. The rep, who is white, curried favors with the doc and the nurses/staff members all evening (to the point that I felt cringe at one point when she says something like this to an asian nurse, "I really like your Asian skin and hair; it's so smooth and glowing"). My estimate is that the dinner bill came out to at least $2000. That dinner, according to the doctor, happens every year with this particular company. Of course, I had to sign on a sheet (roll-call if you will) to acknowledge that I attended the dinner (I presume it's for the rep to reclaim expenses). I can only imagine how much/many drugs from Sanofi that the doctor is prescribing to her patients throughout the year.

Another anecdote - my host-family mom is a psychiatrist (the doctor type; not the other psychiatrist kind). She worked for a private mental institution near Philadelphia. There, they have about 20 mentally-challenged patients, 4-5 nurses and my host-family mom. I have accompanied her to there a couple of times and spent ~6 hours while she was touring and meeting with the patients. Both times, a rep from a medicine company brought lunch for the host-family mom and all the staff. Once was just pizza. Another time was some sort of sandwich and stuff. According to my host-family mom, that's pretty typical and they have about two or so such lunch from medicine company reps every week.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by matheusmoreira on Wednesday May 05, 2021 @12:55PM (#27052424)
> It seems like there are quite a lot of relatives/family members of doctors on HN.

Lots of actual doctors on HN. It's true, pharmaceutical companies do market directly to doctors. The most positive form of marketing for patients is when they provide doctors with free samples of drugs they were going to prescribe anyway.

In my country generic drugs are not always the most reliable option and having more trustworthy alternatives really helps. This isn't drug marketing speaking either, there have been actual newsworthy scandals involving "mismanagement" of taxpayer money meant to pay for the production of basic hypertension drugs.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by lotsofpulp on Wednesday May 05, 2021 @10:39AM (#27050417)
> Another anecdote - my host-family mom is a psychiatrist (the doctor type; not the other psychiatrist kind).

In the US, a psychiatrist is a medical doctor, MD or DO. The other kind is a psychologist, who are not medical doctors, and can only prescribe in a small number of states.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by IG_Semmelweiss on Wednesday May 05, 2021 @10:43AM (#27050461)
This is not unusual.

It also complies with law as long as the entire staff have access to the same perks as the doctor.

Morally ambiguous, but certainly within the law.

I can tell you most rank and file really love this

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Red_Leaves_Flyy on Wednesday May 05, 2021 @11:41AM (#27051349)
>I can tell you most rank and file really love this

Let them feel like they're getting something special and you can roll the safe out the front door.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by refurb on Wednesday May 05, 2021 @11:14AM (#27050944)
Assuming the details of your story are accurate, that dinner violates a number of norms and industry standards.

Reps can pay for dinners where clinical presentations are made (educational events). Budgets are supposed to be capped and reasonable. Non-physicians are not allowed to attend.

Not saying your story isn’t true, just saying there are already rules around not doing those things.

Oh, and your sign in sheet will record how much was spent on your meal and it’s should be on the Sunshine Act website that is publicly accessible.

https://openpaymentsdata.cms.gov/search

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by viraptor on Wednesday May 05, 2021 @09:32AM (#27049583)
It's a generalisation that I'm not sure is helpful. There's an unhealthy lobbying from pharma reps - true. But the scale of the problem depends on the country on the clinic, and on the doctor.

"how physicians prescribe medicines" is in my opinion a bit shitty way to describe it to be honest, because there's also the whole scale from outright fraud and pushing addiction, all the way to offering a specific type of what would be prescribed anyway. (With pharmacies offering substitutes and generics)

There are also regions which try to counteract this with, for example, forcing prescriptions to list the active ingredient rather than a brand of medication. (with fun sideeffects like meningitis vaccine taking ~6 lines to describe)

"We have serious problems with pharma influence" - yes. "how physicians prescribe medicines" - unless you qualify that with more information - it's FUD.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by pessimizer on Wednesday May 05, 2021 @02:36PM (#27053880)
The scale of the problem in the US is something like 2 billion a year, so for us it's 1) serious corruption, and 2) the rule, not the exception.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by hulitu on Thursday May 06, 2021 @04:07AM (#27060376)
It's not only in the US. In EU it's the same with some countries worse than others. There are doctors which do not pay for their vacation and prescribe almost only expensive medicines because "they are better as generics". This corruption is helped by the fact that a lot of doctors work in small clinics so they are easier to bribe.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by viraptor on Thursday May 06, 2021 @08:51AM (#27062431)
> It's not only in the US. In EU it's the same with some countries worse than others.

[citation needed] [details needed]

Sure, there is some effect and there is high influence over specific doctors (https://bmjopen.bmj.com/content/7/9/e016408 for a good start). But the sweeping generalisations are not the quality of contents I expected here.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by IG_Semmelweiss on Wednesday May 05, 2021 @10:46AM (#27050509)
Try running a practice with a disfunctional customer service team, insurances that make you do cartwheels to get paid, a billing team that keeps their performance measurement secret, ever changing regulations, random audits at all levels and from all directions, and patients skipping on their portion of the bill.

It should not be surprising that doctors choose the path of least resistance: they go with the salesperson that came to meet them for lunch

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by alasdair_ on Wednesday May 05, 2021 @10:44AM (#27050473)
Or how politicians pass bills, then get $7M in "speaking fees" for delivering a talk for the group that benefits most from the bill.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by refurb on Wednesday May 05, 2021 @11:08AM (#27050848)
As someone who works in the field very little of this happens now compared to say 30 years ago. Hell, industry can’t even give pens now.

Yes, smaller companies will still blatantly break the law sometimes, but it’s rare versus decades ago where “perks” were business as usual.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Dansvidania on Wednesday May 05, 2021 @08:18AM (#27048938)
I feel exactly the same way. Worked for a big american Telco company that is universally hated everywhere (but unknown enough here in Europe so that they manage to hire) and I feel this is exactly how contracts of this kind worked.

We would hear that this or that product was forced on us because this or that senior executive's friend/relative owned the company producing that product.

Fighting against having to use crappy tooling because of this was one of the nuisances that we'd have to deal with a few times a year.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by killingtime74 on Wednesday May 05, 2021 @10:22AM (#27050209)
Verizon right
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Dansvidania on Wednesday May 05, 2021 @11:27AM (#27051134)
I would rather not confirm or deny, but I find it funny that apparently telco companies in the US share a considerable amount of hate; enough for you to have to wonder :D

maybe it is a location-based hatred distribution?

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Red_Leaves_Flyy on Wednesday May 05, 2021 @11:37AM (#27051276)
I've hated every Telco I've ever used, except the first. The first was a small local cell provider that kept my prepaid cell phone in service for months after my funds expired. Since then I've been plagued with terrible service (customer and signal), random outages, near fraudulent billing practices, sketchy offers, high pressure sales in stores, overage fees, arbitrary fees, continuously increasing bills, etc.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by javajosh on Wednesday May 05, 2021 @11:59AM (#27051605)
Could easily be Telekom, which is T-Mobile in Europe. But yeah, it's one of those.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by burntoutfire on Wednesday May 05, 2021 @02:04PM (#27053413)
It's not American though.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by javajosh on Thursday May 06, 2021 @10:15AM (#27063548)
Indeed, but it bought Sprint last April, so it's got some American DNA now.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by lordnacho on Wednesday May 05, 2021 @12:25PM (#27051991)
Yeah but

"Kail set up a corporation to receive bribes from Netflix contractors, the DOJ said."

Super blatant. I don't get how he expected to get away with it? You'd think there's a fair chance his employment contract at Netflix would prohibit having an outside interest like this. Plus you know, maybe learn how brown paper bags work. Or find a relative who has a consulting business to bill. Maybe read what cryptocurrency is. Seems like there are a lot of things you could do that aren't making a separate company which has bank accounts and files returns. Oh yeah and don't buy a house with it, a house can be confiscated.

Anyway he should have read the newspapers more. Clearly the thing to do is like your CTO or how politicians do it, just get them to pay you with a "job" after you leave. Perhaps he just hadn't reached scale yet like you can with political roles. Those £38B we spent on track & trace here in the UK will surely come back to the right pockets somehow.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by INTPenis on Wednesday May 05, 2021 @02:29PM (#27053784)
Yeah reading the case this is nothing like anything I've experienced. But the title alone made me chuckle.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by f00zz on Wednesday May 05, 2021 @07:38AM (#27048631)
Had similar experiences working at LatAm banks. I thought it was a third world thing.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by agumonkey on Wednesday May 05, 2021 @08:03AM (#27048825)
Glad to know every place is equally subject to shitty practice.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by varispeed on Wednesday May 05, 2021 @08:06AM (#27048855)
Have you tried to report it to anti-corruption unit at your org? I understand sometimes they are on it as well and that can put your position at risk.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by INTPenis on Wednesday May 05, 2021 @09:06AM (#27049350)
In most cases I choose to lay low and believe it was a case of hanlon's razor.

But the one case with the CTO who took a leading position at the vendor he was promoting, that was something. It happened almost 9 years ago now.

It's a fun story that me and my friends still laugh about and refer to whenever similar situations come up. But I'm not prepared to push the whole whistleblower agenda in this case. Feels like throwing rocks at a hornets nest for no reason other than principal.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by tootie on Wednesday May 05, 2021 @09:21AM (#27049473)
I've witnessed similar and it's usually Hanlon's Razor. Can't say for sure with every case but I've seen a fair few senior execs who are just legitimate suckers for sales pitches. There's a lot of pressure on them to bring innovation and cut costs and when someone comes along promising to do both they have a hard time passing it up.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by pbronez on Wednesday May 05, 2021 @12:46PM (#27052296)
Unfortunately it's super hard to just buy innovation. You can buy the best tool in the world, but it won't do you any good unless you pivot your business practices to take advantage of it. Sometimes a good tool can by the catalyst for that rethinking. The re-imagining can be as valuable as the tool itself.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by everdrive on Wednesday May 05, 2021 @08:16AM (#27048924)
>to anti-corruption unit at your org

Do most companies have this?

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by tyingq on Wednesday May 05, 2021 @08:55AM (#27049250)
"Internal Audit" is pretty common. Though I wouldn't just assume they would take your side. Whistleblowing is tricky business. Someone may decide that the public tarnish of "it happened" is worse than letting it slide.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by stuff4ben on Wednesday May 05, 2021 @08:25AM (#27048997)
A lot of the larger ones have a Code of Business Ethics and is a required training you take yearly. Either Netflix didn't have this, or this guy just didn't care.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by wayoutthere on Wednesday May 05, 2021 @08:29AM (#27049036)
In my experience, Business Ethics exists to silence whistleblowers. In either case they have about as much influence over executive prerogative as diversity offices have — the people who make the decisions will never give them enough power to question decisions at or above the VP level because they don’t want their own decisions investigated.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Macha on Wednesday May 05, 2021 @12:27PM (#27052021)
It depends. If it puts the company at legal risk, they're pretty quick to act in all companies I've been at.

If it puts the company at just PR risk, varies by company whether they will do anything or participate in the cover up.

Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by Taylor_OD on Wednesday May 05, 2021 @10:27AM (#27050275)
Yeah this is pretty much how these decisions are made at many companies. If it's not a direct kickback its a friends of the decision maker and they go golfing together four times a year. At the vendors expense of course.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by rednerrus on Wednesday May 05, 2021 @11:50AM (#27051458)
Did you an I work at the same place? We had the exact same thing happen. Incompetent CTO bought millions of dollars in unnecessary crap and consulting, quit and joined the unnecessary crap company.
Re:Ex-Netflix VP found guilty of awarding tech contracts in ... by rasputnik6502 on Wednesday May 05, 2021 @05:11PM (#27055892)
It director's wife runs a foundation that gets big donations from software vendor. Every time the vendor sells to the guy's company.