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When CEOs Do Stupid Things

governance transition Aug 11, 2025
surprised business man

- by Jane Halford and ChatGPT

You’ve read the headline. You’ve seen the photo. Maybe you even checked to see if it was fake news, and you now know that it is true.

And then, like the rest of us, you thought:
“What were they thinking?”

It’s a universal board experience. Your CEO does something inexplicable; public, loud, and with just enough drama to make it impossible for the media to ignore. An unbelievable comment, a misjudged relationship, a jaw dropping social post, or a media story that instantly gets its own meme. “What were they thinking?”

Suddenly, your inbox lights up. The media wants a quote. Staff want reassurance. And your board's verbal and email exchanges are full of “?!?!?!” and “what do we do now?” Of course, there will always be the odd board member reactions including that "it's not that bad", instantly lobbying to fire the CEO, or one who is clueless and didn't catch the news story. If you're the chair, the pressure is on you to navigate this one - publicly and flawlessly.

You didn’t plan for this.

And sure, you’ve got all the right things in place: strategic plan, budget, regular board reporting, media protocols, CEO performance assessment, and that lovely photo of the CEO and board chair smiling at last year’s gala.

But none of those documents cover “What to do when the CEO’s personal judgment takes a vacation.”

Now what?

Stop. Breathe. Don’t overreact.

Yes, there is time pressure because of the media story, but you must get beyond your fear, frustration, and gut reaction. Your organization needs you to think clearly and lead.

Even in a ridiculous, public situation, as a board you’ve got more power than you think, and more responsibility than you probably wanted.

You don’t have to know what to do right away but you do need to start asking the right questions quickly.

Here are some ideas to consider as you regroup:

  • Consider your crisis communications plan (or lack thereof). If you have one, follow it. If not, it’s time to find the right help. If you don't have the communications advisor on speed dial, ask your network of board members and executives. They will respond...they understand what you're going through.
  • Get curious before you get furious. Behind-the-scenes context may change how you respond. Are there health, stress, or governance dynamics at play? Is the media story not factual or a significant misrepresentation?
  • Separate the human from the headline. You’ve likely worked with your CEO for months or years. What do you know about their values and judgment? Is this a pattern or an exception?
  • Assess the impact not just the optics. Is reputational harm already done? What do employees, clients, and stakeholders need from the board right now? What will slow down the damage and give the board time to complete its due diligence?
  • Check your transition plan. Whether you stick with your CEO or eventually part ways, you’ll want to know what leadership continuity looks like. Depending on the circumstance you might find the CEO resigning, being terminated, or going on leave. Who will fill the vacancy if that happens this week?
  • Get help. Legal, HR, communications, governance advisors; this isn’t the time to DIY your way through a crisis.
  • Don't engage. Board members, executives, and staff all need to hear that engaging in this topic formally with media or informally through conversations and social media are a "no go". There is one strategy for handling the situation and individual participation can take a bad situation and make it even worse.

Board work doesn't come with danger pay. Reputation risk is real. Thankfully, most boards don't find themselves in a public scandal.

You’re here for the good times, and what now feels like very bad times. These incidents test your judgment, your relationships, and your ability to think beyond headlines.

Mistakes happen. Even to CEOs. 

What matters most now isn’t who messed up.
It’s how you, as the board, lead forward.

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