An important new survey serves to further erode the traditional executive compact in corporate America; i.e., the notion that what CEOs do on their own time is their business, as long as they are not violating any laws. To the contrary, governing boards—mindful of the need to protect the corporate reputation—are now extending their review of executive conduct to a 24/7 cycle. But not without some controversy.
Over the last several years there have been numerous instances of boards taking action against otherwise productive CEOs for matters of personal conduct outside the workplace—see, for example, the cases of Stephen P. MacMillan, the former CEO of Stryker Corp.; ex-Best Buy Co. Inc. CEO Brian Dunn; and Ken Melani, former CEO of Highmark Inc. These and many similar instances have included illicit interpersonal relationships, offensive or harmful communications, public positions on political matters that are contrary to the corporation’s mission and physical confrontations. Now, add divorce to the list.
