A CEO鈥檚 canoodling with his company鈥檚 human resources chief 鈥 caught on the 鈥渒iss cam鈥 at a Coldplay concert 鈥 . Beyond the memes and tabloid fodder, and a company was left in turmoil after .
The case, involving the AI firm Astronomer, may be the most visible of recent CEO personal scandals 鈥 think sex affairs, drug abuse or embarrassing behavior 鈥 but it鈥檚 not an isolated incident. Just weeks following the Coldplay 鈥渒iss cam,鈥 the CEO of Nestl茅 was . Personal scandals have been in recent years.
How do these scandals stack up to other corporate indiscretions, such as financial fraud? As a , I knew that there鈥檚 lots of research on CEOs鈥 financial crimes, but surprisingly little on personal misdeeds.
So my colleagues and I examined involving either financial or personal misconduct. In this research, published in August 2025 in the journal , we found that not all CEO scandals are treated equally: The type makes all the difference.
Personal scandals are harder to survive
For most people, personal indiscretions 鈥 such as having an extramarital affair or abusing drugs 鈥 are a private matter. But for CEOs, even scandals unrelated to business create doubt about their judgment, integrity and leadership. The result is , research shows, and can create lasting harm for the company.
We found that CEOs overwhelmingly exit in the wake of personal scandals 鈥 five times as often as CEOs who commit financial misconduct do, in fact. And strong business performance doesn鈥檛 tend to offer protection.
For example, Hewlett-Packard鈥檚 Mark Hurd, who鈥檚 widely credited with turning around HP in the mid-2000s, was ousted following a 15 years ago. The fallout was swift: The company鈥檚 stock immediately after the announcement, and with leadership in a tailspin, it dropped more than 40% within a year.
Why bad numbers come with better odds
Companies are also routinely accused of 鈥渃ooking the books.鈥 In recent months, . These scandals shake investor trust, trigger sharp drops in company stock and often lead to the chief financial officer鈥檚 departure 鈥 with some CEOs following suit.
However, while cooking the books is considered a severe form of corporate misconduct, our research suggests that it has fewer job-ending repercussions for CEOs than personal scandals do. Roughly half of all CEOs implicated in financial scandals survive, we found 鈥 because, unlike in personal scandals, CEOs can often shift blame.
We also found that CEOs dismissed due to financial scandals tend to be replaced with outside candidates, which has been shown to and lead to .
It might be surprising to learn that a CEO鈥檚 personal misconduct can come at a greater cost 鈥 both to the business and the executive 鈥 than outright financial fraud. Is corporate America overestimating the importance of CEOs鈥 private behavior? Or is it underestimating the importance of cooking the books?
While I don鈥檛 have answers to these questions, I think our findings show the need for more discussion 鈥 and more research.
, Assistant Professor of Management,
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