There have been several recent cases of a CEO or CFO resigning or being ousted for misrepresenting academic credentials. For instance, during February 2006, the CEO of RadioShack resigned by “mutual agreement” for inflating his educational background. During states that the employee should always do “the right thing.”
(a) What is the board of directors’ responsibility in such matters?
(b) What arguments would you make to ask the CEO to resign? What damage might be caused if the decision is made to retain the current CEO?