Boards are acting more quickly than ever to fire executives accused of misconduct, and they’re more likely to be clear about the reasons, according to two new studies. At least 468 high-profile executives and employees in the U.S. have been accused of harassment or other wrongdoing during the past 18 months, according to a tally updated daily by crisis-consultant Temin & Co.
The time between the first public report of an executive’s alleged misdeeds and a company announcement of a subsequent dismissal is down to just over two weeks on average this year, compared with six weeks last year, according to Temin. The company said it analyzed the firing of 240 people, and that the gap has narrowed each month this year.
tap here to see other videos from our team.
“Boards are putting tighter boundaries around what is acceptable and what behavior is unacceptable, acting on that and making it more public,” said Bryan Tayan, a researcher for the Corporate Governance Research Initiative at the Stanford University Graduate School of Business.