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Study: Executive indiscretions can hurt bottom line

published in The Oklahoman | March 7, 2017

In an article titled “Study: Executive indiscretions can hurt bottom line” featured in The Oklahoman, business writer Paula Burkes reported on a study from the Trulaske College of Business at the University of Missouri that examined how businesses were negatively impacted by the bad behavior and indiscretions of their company executives. The study found that when CEOs were at fault, their companies experienced a 4.1 percent loss in shareholder value.

McAfee & Taft labor and employment lawyer Nathan Whatley, who was quoted in the article, said that pre-employment contracts can provide companies with an immediate out for terminating executives who have committed such indiscretions, as such agreements often include provisions that allow businesses to terminate employees for acts of moral turpitude that bring disrepute upon the employer.