Attorney Steven R. Pietro Explains How Best to Respond to Unusual Executive Behavior
Unusual or erratic executive behavior, including unexpected executive departures, represent a significant concern for many businesses in all manner of industries, both in the U.S. and globally. With this in mind, attorney Steven R. Pietro underscores the importance of exercising oversight of senior management and executives in their handling of a company’s business and other affairs.
A board responsibility, the established corporate attorney, from Broward County, Florida, highlights several key areas of concern which must always be promptly addressed should they or similar situations arise.
“A senior executive may engage in accusatory communications,” suggests Pietro, “which is of particular concern when the investor sector is involved.”
He also points toward erratic comments made toward the press, on social media, or elsewhere online. “In situations such as these, the matter must be promptly addressed by the company’s board,” adds the attorney.
Occasionally an executive or another member of senior management may refuse to heed board directions, something which Pietro says simply cannot be tolerated. “Where this becomes an issue, it is usually advisable to seek outside legal help in order to resolve the matter,” he adds.
Another Area of Concern for Steven R. Pietro
Something which he suggests has increased in prevalence in recent years, is a high turnover of senior staff – especially those who are newly hired. “This can point to an issue at the highest level or levels, and may be the result of the unfavorable or otherwise erratic behavior of, for example, the company’s CEO,” he reveals.
This, he says, should not merely be considered a human resources issue, but should instead be addressed by the company’s board. “Turnover of senior executives, especially at—or close to—vice presidential level is often a serious indicator of bigger problems at the top,” Pietro adds.
According to the Broward County attorney, evaluating and monitoring performance among senior figures, including a company’s CEO, should be considered a critical board function and must never be overlooked.
Undisciplined CEO behavior, he points out, can—at best—pose a distraction within a company, and—at worst—potentially negatively affect its value and reputation, in some cases irreparably.
“At the first suggestion of any of these or similar warning signs, it is critical that the board take appropriate action without delay,” Pietro adds, wrapping up.