Jena McGregor writes in the Washington Post about the delicate obfuscation in CEO departure announcements:
Barnes & Noble’s announcement on Tuesday that its CEO, Demos Parneros, was being terminated, gave investors some important information: He would not get a severance. His firing was not related to “any potential fraud.” He had violated a company policy and would no longer be a company director.
PBut one key piece of information the announcement didn’t share was what policy he violated. Coming less than two weeks after Intel disclosed that its CEO, Brian Krzanich, resigned after violating the chipmaker’s anti-fraternization policy — the company had learned of a “past consensual relationship” with an employee — it raises a question. How much detail must companies share when a CEO is asked to leave?
Sometimes an investigation is still underway when the CEO is terminated. But investors deserve a full account of what is known — and how it affects severance.