Expect more CEO exits over undisclosed personal relationships with colleagues, expert says
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The abrupt departure of two high-profile chief executives in recent weeks over undisclosed personal relationships with colleagues could be the beginning of a growing trend, according to one expert.
Failing to disclose such relationships or engaging in them at all has long been a deal-breaker for many corporations, yet BP CEO Bernard Looney and Cboe Global Markets Chairman and CEO Edward Tilly both resigned from decades-long careers at their respective companies this month after boardroom investigations discovered they had not been entirely forthright.
The recent resignations of two high-profile corporate CEOs over failing to disclose personal relationships with colleagues could lead to more departures for the same reason, according to London Business School professor Randall Peterson. (iStock / iStock)
Professor Randall Peterson of the London Business School says to expect more CEO exits over failing to disclose personal relationships with colleagues, and he points to two major factors: The rise of the #MeToo movement and the end of the COVID-19 emergency.
Peterson told FOX Business that #MeToo and other events set the stage, and as the country emerges from the crisis mode of the pandemic, the resignation of CEOs of major corporations is a signal that boards are no longer feeling the threat from the pandemic and can return to «normal programming» rather than focusing on getting through a crisis.
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Chief executives becoming involved with colleagues presents liability issues for companies because they can result in lawsuits, impact culture, damage a company's reputation and lead to questions about how a
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