One might suppose accountability and responsibility apply to CEOs. Then, again ….
“Gymnastics Boss Paid Severance,” The Wall Street Journal, June 3, 2017 A9. The CEO, who was nominally in charge when the team doctor for the women’s gymnastics team allegedly abused female gymnasts, gets a $1 million severance package.
One wonders what the Board would have paid him if they fired him for cause. The gymnastics federation reportedly sat on the results of an internal investigation of the sexual abuse allegations for five weeks. The CEO said the federation didn’t have an obligation to report sexual abuse by its coaches to law enforcement. Didn’t the ex-president of Penn State just get sentenced to jail for similar acts or omissions?
One of the Board’s fundamental jobs is to hire the CEO; another is oversight. Everyone has a duty to report violations of law. It would appear either the Board or the CEO or the Federation wasn’t doing its or his job. Maybe the Board gets severance, too. What do the shareholders get?