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Out of control CEO - should I inform Board Member?

Long-story short, our CEO has made some critical decisions that, ultimately, will jeopardize the shareholder value of the company. From internal politics to short-sighted sales tactics, the CEO is proving to be unreliable and reckless.

As part of my position, I feel like it's my fiduciary duty to make it apparent that the organization is in jeopardy of failing and/or churning a number of key employees.

Question is, should I bring this topic up - confidentially - to a board member for them to investigate further? My relationship with the Board Member is cordial, but this would be a very serious topic that might make me personally vulnerable (but also vulnerable if I DO NOT say anything).



Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

How would you demonstrate examples of your view about the CEO ('...From internal politics to short-sighted sales tactics, the CEO is proving to be unreliable and reckless...")?

How can you show his actions are not in alignment with the board's expectations of how he executes strategy?

What has been the CEO's response to your questions about decisions he's making? Are they documented? Anything illegal or in violation of lending agreements?

Are you prepared to walk away if you don't get support from the board member?

Document, document, document!!

(Director of Finance and Operations) |

Very good questions.

Nothing illegal has occurred - if anything did I would immediately make this apparent.

There are a few strategic decisions that have been made that have resulted in lost revenue. While mistakes happen, I believe these mistakes were negligent.

Regarding supporting documentation, I think there is some to provide (but definitely not bulletproof).

Perhaps I should hold off on announcing anything. Additionally, I am quite certain that a large portion of the organization is ready to quit, which might be sufficient evidence to support the idea of reckless and poor leadership.


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