Farro Biomed: Effective Oversight When Leader Character Is a Risk
The chief operating officer at Farro Biomed, an independent laboratory in the health care sector, was a talented negotiator, and could be credited with a great deal of the company's success. But inside the company, he was known to be a bully. One of his favourite targets was a middle manager who was responsible for running the executive offices and the board's secretariat. Her work subsequently declined, leading to problems with the board's secretariat. A board member complained, and the chief executive officer eliminated her position. The manager struck back with a demand for a large severance package, claiming a toxic work environment, bullying, and sexual harassment. The chief executive officer had no choice but to take the matter to the board for direction. The board needed to decide how to proceed.