Why? Because he funneled business to a vendor run by someone he was romantically involved with—and failed to disclose the relationship. The deal came with unusually favorable terms, including a multi-million-dollar consulting agreement. The board found out, and now he’s out of a job. He’ll also forfeit his equity awards and repay a prorated portion of his $2.5 million signing bonus.
But this isn’t just about one executive’s bad judgment. It’s a cautionary tale about what happens when leaders forget that trust, transparency, and ethics aren’t optional. If you’re running a business, you can’t afford to wing it on conflicts of interest. You need structure. You need clarity. And you need a culture that doesn’t look the other way.
Here are five actionable steps to get there:
1. Start With a Clear Policy. Spell it out. Define what a conflict of interest is—and give examples. Romantic relationships? Yes. Outside gigs? Absolutely. Family ties? 100%.
2. Make Disclosure a Norm, Not a Punishment. Employees should feel safe disclosing potential conflicts early, before they blow up. Create a process, not a trap.
3. Invest in Training. Conflicts aren’t always obvious. Regular training keeps the topic top of mind and helps employees navigate gray areas before they become red flags.
4. Enforce the Policy—Even at the Top. A policy that’s only applied to rank-and-file employees isn’t a policy. It’s theater. Consistency is credibility.
5. Investigate Concerns Swiftly and Seriously. When something smells off, don’t wait. Dig in. Document everything. And take action if warranted.
This stuff isn’t optional. It’s the backbone of ethical leadership and good governance. Conflicts of interest don’t just erode trust—they spread like mold. Once employees think the rules don’t apply to leadership, they stop believing the rules matter at all.
Set the tone. Lead with integrity. And when in doubt—disclose, disclose, disclose.
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