It's rare when a Board of Directors fires a CEO in 2018, but once in awhile it happens. Sometimes the worst crimes go unpunished, whereas a relationship with a co-worker can mark a sudden downfall, especially if it involves sexual abuse. In the case of tech giant Intel, CEO Brian Krzanich resigned in June 2018 afer it was learned he had an affair with an employee that violated the company's non-fraternization policy.
CEO Dudley Haggler was not the type of old world business type who even considered resignation. He was raised to be a fighter for his beliefs. As leader of a conglomerate that made everything from paper clips to jet engines, he commanded a seven-figure salary and owned several mansions on PeerAmid Island.
Then one day a disgruntled low-level employee who was fired for being too much of a whistleblower on company corruption, reported to the PeerAmid Times that CEO Haggler had an ongoing affair with receptionist Jen Jennenberry. After the news agency published its interviews from both Haggler and Jennenberry that confirmed they both consented to the relationship, the Board moved swiftly to remove Haggler from office, citing ethics violations.
Haggler, 64, was planning to retire in a year. Jennenberry, 24, will remain with the company. A memo sent to all employees and shareholders stated that the firm has a zero tolerance policy regarding violation of corporate governance principles. It should be noted that Haggler is married, whereas Jennenberry is single.
Some say the scandal was used to cover up a bigger scandal, since affairs are not as frowned upon in our society as corporate fraud. The fraud, in this case was that the CEO approved the mass production of electronic components that had serious security flaws. After Haggler learned of these defects he dumped 100,000 shares of the stock on the market, which should have drawn red flags as an insider trading scheme.
Instead, the crime went unpunished, but the Board knew it had to get rid of Haggler somehow, even if it were just a minor technicality. The corp's insider trading and flawed products were kept a secret. But if those issues are ever exposed, they can protect themselves by saying "the individual who caused those problems no longer works for the company."