The Bar Is on the Floor: Why CEO Misconduct Keeps Happening and How We Actually Stop It
When a man at the top behaves badly, no one is shocked anymore. We shrug. “It’s just another Tuesday.”
Sexual misconduct, bullying, massive layoffs with no warning, romantic relationships with direct reports, fraud, coverups, whistleblower retaliation.
In 2025 alone, Nestlé, Barclays, and JLL Australia all made headlines for CEO behavior that violated ethics, policy or both.
And if you think these are outliers, you haven’t been paying attention.
The CEO Misconduct Hall of Shame
Let’s start with a few recent examples:
Nestlé (2025): CEO Laurent Freixe was dismissed after an undisclosed romantic relationship with a subordinate, violating internal conduct rules (Reuters).
JLL Australia (2025): CEO Dan Kernaghan was removed after reinstating an executive accused of sexual harassment and mishandling misconduct complaints (Courier Mail).
Barclays (2025 ruling): Former CEO Jes Staley was banned from UK financial services for misleading regulators about his ties to Jeffrey Epstein (The Guardian).
McDonald's (2023): Stephen Easterbrook was fined and banned by the U.S. SEC after misleading investors about inappropriate relationships with employees (BBC).
P&O Ferries (2022–2025): Peter Hebblethwaite oversaw mass layoffs by video, triggering years of public backlash and an eventual resignation (BBC).
That’s just a taste. Toss in Theranos, Wells Fargo, PwC Australia, Papa John’s, and “Pharma Bro” Martin Shkreli for a full buffet of bad behavior.
Why Does This Keep Happening?
It’s not just about bad apples. It’s about systems that reward rot.
Here’s what could be driving these behaviors:
1. Unchecked Power: CEOs operate in bubbles. The higher they climb, the fewer people challenge them. Leader isolation and excessive confidence (a.k.a. hubris) reduce self-correction.
2. Gendered Entitlement: Men in male-dominated industries are often socialized for dominance, risk-taking, and boundary-pushing. The result? More misconduct in the form of bullying, sexual harassment, and unethical decision-making.
3. Rewarding Results Over Process: As long as CEOs deliver on growth and shareholder value, toxic behavior is tolerated until it explodes.
4. Weak Guardrails: Boards look the other way. HR doesn’t touch the top floor. Whistleblower protections fail. In founder-led firms or family businesses, oversight can be non-existent.
The Bar Is on the Floor
We are not asking for much.
Let’s be honest: "Don’t harass or assault anyone" is not a high standard. Neither is "Don’t lie to regulators or shareholders."
So let’s put it plainly.
Three Things Not to Do (The Basic Bar):
Don’t abuse your power to harm others.
Don’t lie, cover up, or retaliate.
Don’t create or tolerate toxic environments.
Three Things To Actually Do:
Use your power to protect others.
Use your influence to elevate others.
Use your visibility to model integrity.
Why It Might Finally Matter
The consequences are catching up:
Legal bans and fines (Barclays, McDonald’s, Wells Fargo)
Clawbacks and criminal charges (Theranos, Shkreli)
Public boycotts and talent drain (Papa John’s, P&O Ferries)
Loss of legacy - permanently tarnished reputations
Boards are starting to tie bonuses to conduct, regulators are getting more aggressive, and even C-suite peers are turning their backs on misconduct.
Younger employees? They’re watching. So are your customers. And they’re not quiet.
So What Do We Do About It?
We shift the culture of leadership.
That means stronger governance, not just louder branding. That means promoting people with character, not just charisma.
And it means raising the bar from “don’t be a criminal” to something higher.
Decency. Accountability. Courage.
If you’re a board member, investor, or employee, it’s time to stop shrugging.
And if you’re a CEO?
Lead like people are watching.
Because now they are.
P.S. Want to know who’s doing it right? I'm thinking that should be the next article. What do you think about a list of the folks who are doing it right?
