Plea deals may not be our thing, but could be useful

Outlook

Is Tesco close to landing a US-style plea deal to resolve a lengthy investigation into accounting irregularities? It looks that way.

This may make people uncomfortable, particularly if what is signed looks like a slapped wrist. But what really rankled about the financial crisis, and subsequent banking scandals, was that while companies were fined heavily, individuals, and especially managers and executives, largely got off.

The SFO is also investigating individuals connected to the Tesco scandal. A corporate plea deal may free time, and money, for pursuing them. Which matters.

A corporation cannot be jailed, only fined, and shareholders meet the cost of those. Successfully prosecuting individuals would, by contrast, send a very clear message to the current generation of company bosses. If the price of that is a plea deal, it may be worth paying.