- In today’s CEO Daily: Diane Brady on the recent rash of poor CEO behavior.
- The big story: China’s “Salt Typhoon” may have stolen data on nearly every American.
- The markets: Mostly up.
- Plus: All the news and watercooler chat from Fortune.
Good morning. It’s great to be back after a short break. Catching up, I’ve been struck by the number of CEOs facing public scrutiny—and sometimes a public ouster—for their behavior beyond the job. In the past week alone, we’ve seen Suntory Holdings CEO Takeshi Niinami ousted for allegedly buying illegal supplements, Nestlé CEO Laurent Freixe was fired for failing to disclose an affair with a direct subordinate, and Piotr Szczerek of Poland’s Drogbruk was vilified for snatching a hat from a boy at the U.S. Open.
CEOs have long been held accountable for their behavior through ethics clauses and board oversight. It’s not always easy to gauge how these standards may change. Enforcement of the Foreign Corrupt Practices Act, for example, was put on pause earlier this year and recalibrated, suggesting a more relaxed shift toward the practice of bribing foreign officials. Kroger CEO Rodney McMullen resigned earlier this year because of “certain personal conduct” that was not disclosed. Kohl’s, on the other hand, disclosed that it was firing CEO Ashley Buchanan 100 days into the job because of an “unusual vendor relationship.”
What are the lessons for leaders in all this?
Don’t date at work. Consensual or not, it’s a bad look and likely to get you fired. Your coworkers don’t like it. Nestlé CFO Anna Manz told a Barclays investor conference that employees used the company’s internal reporting system to complain about Freixe’s “improper” favoritism and alleged romance with the employee in question.
Don’t behave like a jerk in public. If caught on video grabbing a signed cap from a kid at a tennis match, don’t complain that the uproar is disproportionate and gloat that “life is first-come, first-served.” As for illicitly cuddling your coworker in public, search “Astronomer” and “Coldplay.”
It may cost more than your reputation. Remember the good old days when a board would kick you out the door with a parachute on your back? That may be over. Freixe left without a severance package. Former McDonald’s CEO Steve Easterbrook got a nice exit when he was fired for a romantic relationship a few years ago and then had to pay it back when more came to light. Some people probably think you’re already paid too much.
We live in a viral age. Image searches. Facial recognition technology. Body cameras. Smartphones. Yelp reviews. My colleague Eva Roytburg sums it up nicely. Think of yourself as royalty, a celebrity, and the epitome of power rolled into one—and behave accordingly.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
“Salt Typhoon” may have stolen data on nearly every American
Hackers backed by China now have data on nearly every American citizen and their years-long attack on web infrastructure targets allows “Chinese intelligence services to exploit global communication networks to track targets including politicians, spies and activists,” the NYT reports.
Job market slowing
The Bureau of Labor Statistics will release the latest jobs numbers (so-called nonfarm payrolls) tomorrow. Yesterday, the government reported on new job openings, revealing that the U.S. economy now has the slowest hiring market in nearly a year, a clear sign that hiring momentum continues to cool.
Figma stock drops 14%
Five weeks after going public with a stunning 250% first-day pop, Figma is coming back down to Earth. Shares of design software company Figma plunged 14% in extended trading, as investors took a dim view of Figma’s first-quarter earnings report.
Trump uses LinkedIn to troll former White House staff
The White House replaced the official photo on its LinkedIn page with a portrait of President Trump, so that the resumes of any former West Wing staffer—including President Obama—now feature Trump’s face.
McDonald’s CEO on the “two-tier economy”
In a recent interview with CNBC, McDonald’s CEO Chris Kempczinski argued that there exists a “two-tier economy”: one that’s good for those making upwards of $100,000 but pushing those making less to cut more of their spending.
Buffett on Kraft Heinz split
Kraft Heinz is officially splitting into two companies, and Warren Buffett, who was partly responsible for bringing the two companies together, says he’s “disappointed.” “It certainly didn’t turn out to be a brilliant idea to put them together, but I don’t think taking them apart will fix it,” he told CNBC.
Epstein survivors offer “client list” names
Women abused by the disgraced financier Jeffrey Epstein say they will publish their own list of people linked to their abuse if the Department of Justice does not disclose everything it knows about those in Epstein’s circle. Separately, Rep. Marjorie Taylor Greene (R-Ga.) said she would be willing to read a list of names under the constitutional immunity of Congress: “If they want to give me a list, I will walk in that Capitol on the House floor and I'll say every damn name that abused these women.” President Trump opposed the moves. “This is a Democrat hoax that never ends,” he said on Wednesday.
The markets
S&P 500 futures were up 0.16% this morning. The index closed up 0.51% in its last trading session. STOXX Europe 600 was up 0.25% in early trading. The U.K.’s FTSE 100 was flat in early trading. Japan’s Nikkei 225 was up 1.53%. China’s CSI 300 was down 2.12%. The South Korea KOSPI was up 0.52%. India’s Nifty 50 was up 0.24% before the end of the session. Bitcoin sank to $110.7K.
Around the watercooler
One out of every 4 homes is at ‘severe or extreme’ climate risk, study says by Nick Lichtenberg
A Trump loss in his tariff court case could mean a $150 billion refund for American businesses. Here’s how they could get their money back by Marco Quiroz-Gutierrez
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
