CEO Incompetency

Deb S

I need help with a touchy issue. Our CEO is experiencing diminishing mental capacity that has steadily progressed from an annoyance to serious incompetency. We, as a management team, have been covering for him - kinda stuck between our duty to make our boss look good, our fondness for him, and the well-being of the company. We approached him with our concern for him about a year ago; he promised to see his doctor. He tells me that his doctor finds nothing (physically) wrong with him. We don't know if he a)went to the doctor, b)the doc did find something wrong but our boss will not admit is, c)the doc found something wrong and our boss can't remember it. We also approached the board of directors regarding this situation. The board acknowledged that they had "noticed something" but seems more comfortable with micromanaging now than doing something about the CEO. We are very concerned that the CEO may cause significant harm to the company, not only financially but to our reputation as an industry leader in this state. We have been approached by employees as well as his peers about his health. He has no intention of retiring any time soon. By the way, the rest of the management team is documenting events to illustrate our concerns. Any advice?

System

Either you (if you are the highest level HR person in your co.), or the senior HR executive of your company, should again approach the board and explain that there is much concern and unrest amongst the management team, and that it is significantly detracting from the organizations ability to operate at its peak levels. I would think that grumblings from the management team and their concern with the leadership abilities of the top executive might lead to morale issues, performance problems and turnover of key personnel. The Board needs to address the issue. They can't continue to ignore the situation if it truly is affecting the perceptions and confidence levels of your management team. The Board needs to belly up to the bar and face it head on, one way or another. If they refuse, there is not much more that can be done, untill key people start leaving your organization due to this issue, or profits start taking a nose dive, or both.

Deb S

Thanks for the input. We already have a meeting scheduled with the board chair next week. Wish us luck!

System

Be cautious that you don't run afoul of any A.D.A. issues. Forced retirement is pretty strong (although it may ultimately be your best sollution), however; make sure you don't have "accomodation" issues if the C.E.O's problems are medically related, and thus could be "considered" or "regarded as " a disability. Step gingerly.

Gillian3

The preceding post is it in a nutshell. It is the Board's job to fix the problem. All you can do is bring it to their attention.

JM in ATL

You have made a step in the right direction getting the board involved, but be assertive and ask them for a course of action. What is their plan?

Forced retirement with a severance package for the next 5 years? that might be cheaper than taking yoru chances.

Deb S

We'd thought about the retirement "incentive" also and will bring it up with the board chair at our meeting on Monday. Thanks for your help.

njjel

I believe you stated you had already met with the board, correct? If they deem nothing is to be done, you are stuck! I can't believe, however, that they would take that approach. Keep us posted.

Deb S

We have spoken to the board, individually, but tonight we are meeting with the board chair. The purpose of tonight's meeting is to meet as a team, bring our documentation, and hopefully impress upon the board that they can no longer count on the rest of us to cover for the CEO; i.e. we cannot follow him 24/7 to prevent and/or correct his errors. It will be tough, though. He is a wonderful man; but my job is to protect the company, not an individual.

LarryC

Deb, I think you are taking the right approach. Keep documenting and keep hammering away at the board until it forces them into taking action. That's what I did at a previous employ and, after much perseverance, the CEO was ousted and it was my duty and pleasure to be a part of the termination meeting. Coincidently, that was also the day that I gave my notice.

Our CEO had a different set of problems than yours does, but you have to keep after the situation so that it eventually doesn't bring everyone down.

SMace

I would keep my focus on his failure to do his job not his health condition.

Pinpoint the problems with his job and have the board set up a performance improvement plan. If the health stuff comes up during that discussion, deal with it then. If there is an accomodation, decide if you can do it and then monitor his performance and terminate if necessary.

LivindonSouth

Is this a 'hired' CEO or is he also the owner and Chairman of the Board. You better watch your step with this one. I don't get the concept that it is HR's role to continue to run this up the flagpole. Don't think for a moment that a Board of Directors does not already have full knowledge if there is a problem. You keep hammering and you may get nailed!

Deb S

He is a hired CEO.

crawfod

Deb, is he aware of his diminishing performance? My initial reaction was like SMace to treat it as a performance issue, and if he acknowledges that his health is affecting his performance, have him provide a medical statement describing any restrictions or accommodations needed.

You also indicated you have already had some private discussions with him regarding his health. If your relationship is close, perhaps again you could talk with him with friendly advice to seek medical help before the board has to take more embarassing actions against him. But if he doesn't recognize any work performance problems, and you can't tactfully help him see what the rest of you do, then let the board handle it.

LarryC

[font size="1" color="#FF0000"]LAST EDITED ON 05-23-05 AT 11:39AM (CST)[/font][br][br]Deb, as don says, you take some risk here. That's why it's a good idea to have excellent relationships with key board members and keep conversing (hammering) with them.

Oh, and by the way, Livindonsouth, welcome to the forum. You'll find alot of weird comings and goings around here.

NaeNae55

Don't you mean welcom back? Livindonsouth looks like Don D to me. A rose is a rose by any other name....(or something like that).

Pricehcs

I would recommend sending him a case of 'Depends' or, as SNL used to call them 'oops, I crapped my pants...' oh wait... you said... incompetence... my mistake...

#1 thing a consultant shouldn't say: "I could tell you the answer right now, but we're committed to a three month project..." #-o

SMace

as SNL used to call them 'oops, I
>crapped my pants...' >

That was one of my all time favorite skits. I was about to crap MY pants I was laughing so hard.

System

Whenever the mamgement team, or another significant portion of the employee base, is voicing concern over the mamgement and direction of the company (over and above the normal bitchin' and moanin') it is absolutely incumbent upon HR to raise this issue with the appropriate individual(s) responsible for doing something about it. If HR takes on the persona of "hear no evil, see no evil..." they would be ineffectual and rather worthless. It's our obligation to raise issues up the proverbial flag pole that have to do with employee upheaval, widespread morale issues and issues that may cause exodous of key personnel. If not HR, then who??

Deb S

If the board continues to drag this along, I may be one of the "key" personnel to exit - probably by getting fired because by patience is all used up and I've been pretty crabby with the CEO.

Anyone going to Margaret Morford's workshop in Las Vegas this week?

System

If you leave, that may be the wake up call the board needed..... (just kidding)

Deb S

They'd probably be glad to see me go - I'm kind of a nag...