2013|Case No.E493| Length 5 pgs.
Donatella, LLC will be losing a key board member in about two years, and the current board members must work to find a new member to replace him with someone with similar operational experience. After finding Peter Jeter, the company struggles with how to pay him, as detailed in an email chain between the board of directors. Sara Johnson, Donatella’s CEO, becomes stuck in a situation of choosing to overpay this new board member, upset her board members, or restart the hiring process.
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This case serves to educate readers on the difficulties of communication in companies, especially in board meetings. As CEO, Sara Johnson faces the challenge of deciding how to compensate without offending current board members, retaining the culture, and developing a positive relationship with a new board member. The balance of these challenges represents the primary learning objective.