10 scandalous resignations of heads of large companies

US, WASHINGTON (ORDO NEWS) — Large companies, as a rule, value personnel, especially if they are managers who were able to lead the company to high results.

However, it also happens that the leaders of large companies that have held managerial positions for a long time are fired, often with scandals.

It also happens that its founders leave the company, which is associated with the company’s loud failures, the scandalous behavior of the dismissed employees themselves or the machinations of competitors within the company itself.

Below we will talk about 10 scandalous resignations of the heads of large companies.

1. Carlos Ghosn

Carlos Ghosn – former President and CEO of Renault and Nissan; head of the strategic alliance Renault – Nissan – Mitsubishi.

On November 19, 2018, Japanese and world news media reported that Carlos Ghosn voluntarily confessed to the Tokyo prosecutor’s office and was arrested. At the same time, Nissan Motor Co. issued a press release containing information on the company’s long-term underestimation of information on income presented to the stock exchange, overstatement and concealment of management’s income, as well as the use of the company’s assets by top management for personal purposes. The main culprits of the violations were named Carlos Ghosn and Director Greg Kelly. The company said that the board of directors will be asked about the dismissal of Gon, and the company also apologized to the shareholders. Renault on January 24, 2019 also removed Gon from management. On April 8, Carlos Gon was expelled from the board of directors of Nissan.

On January 2, 2020, Interpol issued an international warrant for the arrest of Gon.

2. Martin Sorrell

Martin Sorrell is a British businessman and founder of WPP Plc, the world’s largest advertising and PR group, both in terms of revenue and number of employees.

In April 2018, the company announced the departure of Sorrel from the post of head of the company. The reason for Sorrel’s departure was an internal investigation into “the fact of possible improper personal behavior.”

Sorrel led the company for more than 30 years, but he is suspected of misuse of funds and assets of the company.

Sorrell himself regretted his departure, but noted that this was necessary for the company. In addition, he denies all allegations.

3. Travis Kalanick

Travis Kalanik is the founder of the network transport company Uber.

In 2009, Travis Kalanick and Garrett Camp created Uber, a mobile application that allows you to connect passengers with hired drivers to receive pick-up services. Uber currently operates in 58 countries and more than 300 cities around the world.

Despite the success, the company was regularly accompanied by scandals related to sexism, as well as complaints from drivers about low salaries. The reason for the scandals has repeatedly become loud and contradictory statements of Kalanick himself.

As a result, Kalanick announced his resignation, motivating him with the fact that his presence in the company impedes her development, while he still owns a significant share in the company.

4. Leslie Moonves

Leslie Moonves led the American television channel CBS. However, he was accused of sexual harassment, as well as of destroying evidence and trying to mislead the investigation during the investigation.

An internal investigation was launched against Munves, which revealed that the former general director of the channel had sexually assaulted both the workplace and outside it.

In addition, the company found grounds to refuse to pay the former CEO $ 120 million for early termination of the contract.

5. Tijan Tiam

Swiss bank Credit Suisse has been at the center of the scandal since September 2019. It was then that the asset management manager Iqbal Khan, who switched to work at UBS, discovered the surveillance.

However, an internal investigation revealed that the bank’s CEO did not know anything about the surveillance. Responsible for the surveillance turned out to be COO Bue, who was fired at the end of 2019.

However, Tiam resigned after the publication of the bank’s results for the IV quarter of 2019.

6. John Schnatter

John Schnatter served as CEO and Chairman of Papa John’s Board of Directors.

Schnatter resigned as CEO of the company after making a series of conflicting statements about National Football League players kneeling during the national anthem before the start of the match.

However, he later made a number of racist statements, which led to the fact that Schnatter was forced to apologize and resign as chairman of the company.

Schnatter is accused of having low sales figures because of his behavior, and a contract with the National Football League has been broken.

7. Hiroya Kawasaki

Hiroya Kawasaki served as CEO of Kobe Steel CEO, Japan’s third largest steelmaker. Kawasaki stepped down as CEO and chairman of the board in March 2018. This was due to a scandal over product quality. The company admitted that during the year it delivered goods with falsified characteristics to more than 500 customers.

In addition to Kawasaki, other top managers, in particular the head of the copper and aluminum division, Akira Kaneko, left their post. It was also noted that as a result of the scandal, most senior managers temporarily received cut salaries.

8. Adam Neumann

In 2010, Adam Neumann, together with his partner Miguel McKelvey, created a network of WeWork coworking offices in New York.

The business was that the company rented large commercial premises, equipped them, created a stylish interior, and then these premises were leased to other companies.

By the end of September 2019, WeWork had a total of 625 sites in 123 cities around the world.

WeWork was considered one of the most expensive startups in the world.

However, then it became known that the company had huge losses, since more money was spent on arranging the premises than it was possible to get from renting these premises.

Among other things, it turned out that Adam Neumann spent the company’s funds for personal purposes. This was the reason for the scandal and for the subsequent resignation of Neumann.

A major investor – Softbank – refused to invest.

9. Birgitte Bonnesen

Brigitte Bonnesen served as President of Swedbank. However, the Swedish state economic crime control department launched an investigation against the bank, suspecting that it could launder money. The reason for such an investigation was a journalistic investigation, in which the bank was accused of money laundering.

Despite the bank’s board of directors reaffirming Birgitte Bonnesen confidence, she had to resign because, according to management, a lot of pressure was put on the bank in connection with the scandal that erupted after the journalistic investigation came out.

10. Dennis Muilenburg

Boeing was at the center of the scandal after the production of Boeing 737 MAX aircraft was suspended after two air crashes. This led to a decrease in the value of the company’s shares, as well as to a decrease in investor confidence in the company.

As a result, the head of the company Dennis Muilenburg resigned.

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