David F. Larcker and Brian Tayan, “Closer Look,” Stanford Business, May 10, 2016
The board of directors has a responsibility to investigate credible allegations that management has engaged in activity that is not in the interest of the company or its shareholders. In the case of illegal activity, the appropriate response is likely to be very clear. Less obvious are the actions directors should take when the CEO engages in behavior that is questionable but not illegal. This article examines the actions that boards take in response to CEO “bad behavior.” […read more]