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 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’s 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, celebrity, and the epitome of power rolled into one—and behave accordingly.
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
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Job market slowing
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Figma stock drops 14%
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Epstein survivors offer “client list” names
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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
New Nestlé CEO joined the company straight out college—like Mary Barra and Doug McMillon, he climbed all the way to the top at a single company by Preston Fore
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
This story originally appeared on Fortune
