(Bloomberg Businessweek) -- Businesses spend endless hours preparing for external perils such as fires, recessions, or even climate change. But the biggest danger for many companies could sit right in the corner office.
Call it key man risk, a real worry in an age when chief executive officers can be synonymous with the enterprises they lead. If a founder fails to appreciate the importance of privacy to his customers (Facebook) or a leader's death exposes previously overlooked holes in a corporate strategy (Fiat Chrysler), that spells trouble. It's even worse when an executive makes racially insensitive remarks (Papa John's) or a CEO is accused of inappropriate sexual behavior (CBS). That can send investors heading for the exits.
Is It Time for Facebook to Consider Hard Limits to Zuckerberg's Power?
Inside the company, the founder can do no wrong. Outside, investor wake-up calls are getting louder.
Marchionne's Unfinished Business: Selling Jeeps in China
The rock star CEO had a blind spot in the rapidly expanding market, and now Fiat Chrysler has to play catch-up.
Papa John's Founder Is at War With His Company
The board is trying to stop the ex-CEO from mounting a comeback after a string of controversies.
Les Moonves's Sexual Harassment Scandal Threatens Future of CBS
The CEO has been battling Shari Redstone for his company's independence. Recent complaints could derail that.
The Corner Office Conundrum
When the CEO is responsible for managing public opinion or satisfying Wall Street, things can get risky.
To contact the editor responsible for this story: Howard Chua-Eoan at hchuaeoan@bloomberg.net
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