To leave or not to leave: the CEO’s crisis comms dilemma
In the wake of any crisis, the hunt for someone to blame is nearly always successful. Sometimes the buck stops right at the top, writes Tony Jaques, but does it really help to dump the CEO?
Just days after the Australian Banking Royal Commission exposed shocking financial wrongdoing at AMP, CEO Craig Meller stepped down as head of the wealth management and insurance giant (the chairwoman of AMP followed a week later).
Announcing his resignation, Meller insisted he did not know about the company’s misdeeds, but acknowledged that he was ultimately responsible. “As they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be done to restore public and regulatory trust in AMP.”
It was reminiscent of the departure of Volkswagen CEO Martin Winterkorn following the carmaker’s emission-cheating scandal. “As CEO I accept responsibility for the irregularities that have been found in diesel engines… even though I am not aware of any wrongdoing on my part. Volkswagen needs a fresh start. I am clearing the way for this fresh start with my resignation.”
They say that crap runs down hill…..and they are right. But when the crap hits a certain point….responsibility starts travelling uphill.