Prof. Maxfield quoted in Globe article on CEO conduct
The May 15 Boston Globe article, “Boards keep eye on CEO conduct,” reflected on the shift in public companies’ attitudes toward CEO personal misconduct. Many company boards are moving toward a “no-tolerance” policy in regards to CEO personal misconduct. Last week, Keane Inc. CEO Brian T. Keane resigned from his post after accusations of sexual harassment. Simmons SOM associate professor Sylvia Maxfield said that many boards and their audit committees are focusing on “reputational risk” in hiring and evaluating chief executives and other senior managers. With more empowered directors, and more nonemployee outside directors, few chief executives can survive a sexual harassment charge these days. “They have to ask him to resign, and he needs to do that because it’s their responsibility to protect the company from risk, both reputational risk and financial risk,” Maxfield said, “Reputational risk is one of the most important issues any company faces now.”
View the entire article at: Boston Globe