The function of a chief government officer is commonly seen as the top of company achievement, however it comes with fixed scrutiny and stress. Shareholders, staff, regulators, and the general public anticipate CEOs to embody the values of their corporations whereas additionally delivering outcomes. Even small missteps can have outsized penalties, and scandals that may finish the profession of a mid-level supervisor can deliver a whole company to its knees.

Within the early levels of a startup, founders typically take pleasure in extra leeway as they maintain many of the decision-making energy (shares). However as soon as buyers and a proper board come into play, the margin for error narrows shortly, and accountability turns into far more unforgiving.

The latest dismissal of Nestlé’s CEO, Laurent Freixe, illustrates this actuality vividly. After concealing a romantic relationship with a subordinate, Freixe was pressured out only a yr into his tenure. The scenario mirrors different high-profile circumstances throughout industries the place the personal behaviour of company leaders collided with firm coverage, ethics, or investor expectations.  Who can overlook about what occurred to Andy Byron, CEO of Astronomer, who was caught on a kiss cam at a Coldplay live performance earlier this yr with the corporate’s head of individuals, and principally grew to become a meme. Belief and transparency, it seems, are as important as technique and monetary efficiency.

From misconduct to poor decision-making, historical past is stuffed with examples of executives who misplaced their positions regardless of lengthy careers or spectacular résumés. Under, we discover ten circumstances that reveal the various, unsurprising, but frequent methods a CEO might be fired.

Deceptive the board

Boards want full honesty from their CEOs to make sure correct governance. When a pacesetter lies or withholds info, they undermine the board’s potential to behave within the firm’s greatest pursuits. Even points in a CEO’s private life can set off dismissal in the event that they misrepresent information when questioned straight.

Bernard Looney, former CEO of BP, resigned in 2023 after deceptive the board about previous relationships with colleagues. He had beforehand assured administrators that there have been no considerations, however additional proof proved in any other case. BP dismissed him for critical misconduct, costing him greater than £32 million in pay and shares.

Inappropriate conduct

CEOs are sometimes seen because the face of their firm, and when their private behaviour clashes with anticipated requirements, the results might be extreme. Misconduct, whether or not harassment, abusive behaviour, or fostering a poisonous surroundings, not solely damages a agency’s popularity however can even create authorized and monetary dangers that boards can’t ignore.

Dov Charney, the founder and former CEO of American Attire, was ousted in 2014 after years of controversies involving allegations of sexual harassment, inappropriate behaviour with employees, and fostering a problematic office tradition. His exit got here regardless of his central function in constructing the model, exhibiting how repeated misconduct on the prime can finally outweigh entrepreneurial achievements.

Falsifying product exams

Security and product integrity are central to client belief. If it emerges that an organization has been deceptive regulators or the general public, the CEO is commonly the primary to be held accountable, no matter their private involvement. Cowl-ups round product testing can destroy reputations constructed over a long time.

Volkswagen’s 2015 emissions scandal is likely one of the most placing examples. Vehicles have been fitted with software program to cheat emissions exams, permitting them to seem environmentally pleasant whereas polluting way over permitted. CEO Martin Winterkorn resigned underneath stress as the corporate confronted world outrage and billions in fines.

Mismanagement of funds

CEOs are anticipated to deal with firm funds with the utmost duty. Utilizing company funds for private functions, authorising reckless spending, or creating conflicts of curiosity erodes belief amongst buyers and staff alike. When governance lapses are tied on to the chief government, their place turns into untenable.

Adam Neumann, the flamboyant co-founder of WeWork, was pressured out in 2019 after experiences emerged of extravagant spending, self-dealing, and loans from the corporate to himself. His ousting adopted a failed IPO that uncovered not solely monetary losses but in addition deep flaws in governance.

Accounting fraud

Monetary manipulation is likely one of the gravest sins in company management. Inflating earnings, hiding losses, or deceptive buyers damages markets, destroys shareholder wealth, and infrequently results in legal prices. CEOs can’t plead ignorance when systematic fraud is uncovered underneath their watch.

HealthSouth founder Richard Scrushy oversaw one of many largest accounting scandals in US historical past within the early 2000s, with executives admitting to overstating earnings by billions. Whereas Scrushy initially escaped conviction for fraud, his popularity by no means recovered, and he was later imprisoned on bribery prices.

Private misconduct

CEOs are anticipated to uphold the best requirements of honesty and duty. When their management is linked to widespread unethical behaviour or misconduct inside the firm, the board and regulators typically demand accountability on the very prime. Even when the CEO doesn’t personally commit the wrongdoing, their failure to stop it may be thought-about misconduct.

John Stumpf, the previous CEO of Wells Fargo, resigned in 2016 after it was revealed that staff had opened hundreds of thousands of pretend accounts to fulfill aggressive gross sales targets. Whereas Stumpf didn’t personally create the scheme, his management fashion and pressure-driven tradition have been blamed for encouraging misconduct throughout the financial institution. His departure demonstrated how a CEO might be held chargeable for systemic moral failings.

Ignoring security 

Security lapses can turn into existential threats for corporations, notably in industries like aviation, power, and transport, the place lives are at stake. When a CEO is seen as failing to implement or prioritise security requirements, regulators and boards typically intervene to guard the organisation’s credibility and restore public confidence.

Ahmad al-Kreebani, former CEO of Kuwait Airways, was dismissed in 2025 after repeated failures to adjust to aviation security rules. The nation’s civil aviation authority formally withdrew its assist for his management following missed deadlines and lapses in implementing mandated corrections. His removing confirmed how shortly a CEO might be ousted when security considerations are left unaddressed.

Over-promising and under-delivering

Visionary management typically requires daring guarantees, however when these guarantees collapse underneath scrutiny, the backlash might be swift and unforgiving. Traders, regulators, and clients anticipate a CEO to stability ambition with honesty, and when expectations are exaggerated or intentionally inflated, belief can evaporate in a single day. Over-promising not solely dangers disappointing stakeholders however can even cross the road into fraud if an organization knowingly misleads about its merchandise or capabilities.

One of the crucial notorious examples is Elizabeth Holmes, founding father of Theranos. She claimed her firm might revolutionise healthcare with know-how that carried out lots of of diagnostic exams from a single drop of blood. Traders, high-profile companions, and even governments have been drawn in by the imaginative and prescient, valuing Theranos at billions of {dollars}. However when it emerged that the know-how didn’t work, Holmes confronted prices of fraud and conspiracy. In 2022, she was sentenced to greater than 11 years in jail.

Poor governance

Even when an organization is financially profitable, governance failures or a poisonous office tradition can destabilise management. CEOs can lose their positions not due to speedy monetary underperformance, however as a result of a breakdown in belief with staff, buyers, or regulators makes their management unsustainable. Points reminiscent of weak oversight, discrimination, or systemic mismanagement can all level again to the chief government.

A latest instance comes from Moët Hennessy, the wine and spirits arm of LVMH. CEO Philippe Schaus stepped down in 2025 following revelations of mismanagement and a deteriorating company tradition. Reviews revealed that the corporate shifted from producing over €1 billion in money in 2019 to burning by way of €1.5 billion by 2024. On the identical time, allegations of sexual harassment, gender discrimination, bullying, and retaliation throughout his tenure highlighted governance weaknesses that made his continuation as CEO inconceivable.

Private beliefs misaligned

A CEO’s private views, particularly when shared publicly, can typically conflict with wider social, political, or market realities. Whereas executives are entitled to their opinions, boards and stakeholders typically anticipate leaders to stay aligned with firm values and delicate to present contexts. When feedback or stances alienate key companions, sponsors, or clients, the fallout could make a CEO’s place untenable.

A latest instance is Paddy Cosgrave, co-founder and former CEO of Internet Summit. In 2023, needed to resign after dealing with backlash over public feedback concerning the battle in Gaza. His statements prompted high-profile sponsors, buyers, and audio system to withdraw from the occasion, creating intense stress on the organisation. The controversy highlighted how shortly a CEO’s private beliefs, when perceived as out of step with stakeholders, can set off a management disaster.