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SEU CEO of a Corporation Discussion

SEU CEO of a Corporation Discussion

SEU CEO of a Corporation Discussion


Discussion Question

Heimdall Corporation’s board of directors hired a new CEO, Essa  Alharbi. The Executive Search Firm that hired him found that in their  search of over 200 candidates, he was the most qualified. He had  extensive experience in helping businesses succeed. After the Board of  Directors hired him, 11 months into the job, the company experienced  significant losses in revenue and market share. As a result, the Board  forced him to resign but paid him a handsome sum to leave the company,  as was customary in this situation. A group of shareholders filed a  lawsuit against the Board of Directors indicating that they were liable  for the hiring of the incompetent CEO, and demanding they reimburse the  shareholders for their losses due to his actions.

Are the members of the board liable for hiring Mr. Alharbi, and for the losses of the company?

Action Items

Create your initial post responding to the discussion prompt  above. After you post, you will be able to see your classmates’ posts.

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