CEO Scandals Dog Company Reputations Years After They're Fired
- Stanford study finds news coverage of scandals lasts 4.9 years
- Share prices declined an average of 3.1% after an incident
Renaud Laplanche.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Damage from media coverage of LendingClub Corp.’s ouster of its chief executive officer after an internal review found abuses tied to the sale of a loan may take years to fade.
The fallout from a lying, cheating, embezzling or offensive CEO can linger to soil the reputation of a company by an average of five years after an incident has passed, according to a Stanford University analysis, being released this week, that studied 38 examples of bosses behaving badly from 2000 to 2015.