More CEOs Than Ever Fired Over Ethics
Of the 89 leaders removed from the world’s top 2,500 public companies last year, 39 percent were ousted over ethical lapses, according to a new study by auditing firm PwC. It’s the first time in the study’s 19-year history that ethics violations topped the list of reasons for CEO exits. Meanwhile, the rate of incoming female chief executives dropped to 4.9 percent — down from a record-high 6 percent in 2017.
What’s changed? Experts say company boards feel increasingly compelled to hold their chiefs accountable amid pressure from society’s #MeToo movement, as well as from their own employees.