Recent incidents have highlighted the increasing scrutiny faced by corporate executives similar to how police are monitored. Erik Gordon, a corporate governance professor at the University of Michigan Ross School of Business, noted that CEOs today must recognize that their actions are often recorded by smartphones during public appearances, just as police actions are captured by body cameras.
This heightened visibility was exemplified by Polish CEO Piotr Szczerek, who was filmed taking a tennis hat from a child at the U.S. Open, leading to significant backlash on social media. Such occurrences emphasize the reputational risks boards of directors face regarding their executives’ behavior. The immediate viral nature of social media means that companies often cannot control the narrative surrounding public misconduct. Experts have mentioned that boards must act quickly to mitigate damage, akin to the “golden hour” of crisis management in medicine.
A parallel case involved former Astronomer CEO Andy Byron, who was ousted after being filmed engaging in inappropriate behavior at a concert. This incident underscored the importance of public perception, as companies may need to respond rapidly to avoid reputational harm, often before they have complete context.
As a result, corporate boards are now recognizing the need to treat reputational risk with as much seriousness as legal and financial risks. This shift is leading to faster actions against executives guilty of misconduct, with recent moves including the dismissal of a Nestlé CEO without severance due to personal conduct.
- Why it matters: Companies must be aware that reputational damage can quickly impact their market value and recruitment efforts.
- Corporate governance is evolving to include clearer guidelines for managing CEO behavior in a public context.
- The latest: The recent removal of the Nestlé CEO over an affair marks a significant change in corporate policy regarding executive conduct.
Source: https://fortune.com/2025/09/03/us-open-hat-thief-coldplay-cheating-bad-ceo-behavior/
Source: https://fortune.com/2025/09/03/us-open-hat-thief-coldplay-cheating-bad-ceo-behavior/