Leadership | This is the worrying reason why most CEOs leave their companies

Much like every year, throughout 2018 CEOs were fired and hired as usual. However, there was something different about 2018: more were dismissed due to ‘ethical lapses’ than poor profit or company performances.

These charges based on ethical problems range from sexual harassment and bullying, to bribery and insider trading. A PwC study into last year’s CEO dismissals found a staggering 39% of the forced exits were due to ethical misconduct, compared to 35% based on poor financial performance and just 13% based around board conflicts and investor rebellions.

Just five years before that, in 2013, less than 25% of contract terminations were for ethical lapses. The #MeToo movement has empowered many employees to stand up and report issues based around sexual harassment, and with a move toward more transparency in the C-Suite of companies it is no wonder that more cases of bribery, fraud, and insider trading were revealed.

CEOs from CBS, Lululemon, WPP, Intel, Barnes & Noble and even more departed amid allegations of sexual indiscretions in the workplace and even consensual relationships with employees within a professional environment.