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Summary of article:
The New York Times reported that Huang Jen-hsun was listed as the latest case of a CEO who resigned due to extramarital affairs or intimate relationship violations, which shows that companies are becoming more strict on personal relationships and reporting standards of high-level executives.
The New York Times reported on the 12th that in the past few years, “close personal relationships” have been the reason for the resignation of many corporate CEOs. The number of CEOs resigning due to extramarital affairs is increasing. nvidia (Huida also translated as Nvidia) FounderJen-Hsun Huang (Jensen Huang) is the newest member.
The report notes that posing a threat to national security is not a common reason for firing a CEO. A more common situation is that personal relationships violate company policies. The employee policies of large companies usually have explicit rules prohibiting romantic relationships between supervisors and direct subordinates. Huida’s employee code of conduct stipulates that coworkers should “avoid situations in which words and actions may lead to conflict,” such as the development of “personal relationships.”
CHRO Association Executive Deputy Director, Charles G. Tharp said companies have always had very strict rules on personal relationships between supervisors and direct reports, and they have been in place for many years. Tapp pointed out that since the #MeToo movement against sexual harassment began, companies have become more strict in enforcing relevant regulations.
Mark Hurd, the CEO who turned HP into a technology giant, was fired in 2010 after his board of directors found that he failed to truthfully declare his use of company funds and concealed an intimate relationship with a contractor.
In 2018, Intel CEO Brian Krzanich resigned following reports that he had a “consensual relationship” with an employee.
In addition to the technology circle, Ashley Buchanan, CEO of department store chain Kohl’s, was fired last year after just a few months on the job after she was asked to direct the company’s business to suppliers who were the subject of scandals.
In 2019, the board of directors of fast-food chain McDonald’s decided to fire CEO Steve Easterbrook after it was discovered that he violated company rules by having a romantic relationship with a subordinate. Eight months later, another employee came forward and revealed that she too had a sexual relationship with Easterbrook.
McDonald’s has sued Easterbrook, accusing him of concealing sexual relationships with multiple employees. The lawsuit later ended with a settlement, in which Easterbrook publicly apologized and returned $105 million in cash and stock to the company.
CBS CEO Leslie Moonves, who resigned in 2018 amid a sexual harassment scandal, was one of the entertainment industry veterans during the #MeToo movement.
Summary FAQ
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The report focused on “close personal relationships” and cited Huang as the latest case, emphasizing that if corporate executives are involved in extramarital affairs or violate relationship declaration rules, it could trigger a storm of resignations.
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Because these types of relationships can easily lead to conflicts of interest, management imbalances, and workplace disputes, large companies usually have explicit restrictions or strict restrictions on employees, and enforcement has become more stringent after #MeToo.
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That includes HP’s Mark Hurd, Intel’s Brian Krzanich, Kohl’s Ashley Buchanan, McDonald’s Steve Easterbrook and CBS’s Leslie Moonves.
