1. Put yourself in Wendy Lane’s shoes in 1999 when she is considering Tyco’s invitation to join its board. What due diligence would you conduct before accepting the offer? Are there any red flags you might have noticed?
2. What specifically was going wrong at Tyco? What should the board have done when the finder’s fee became known?
3. If you were in Wendy’s position as an audit committee director of Tyco in 2000, what can you do to reduce the likelihood that Tyco would face these kinds of problems?
4. Suppose that you are currently the nominating committee chair of a board. Would you invite Wendy Lane to be a director on your board?
5. What are your reactions to the Top Ten Lessons that Wendy learned from the crisis (see Case Exhibit 7)?