There are at least three potential ways in which a CEO divorce might impact a corporation and its shareholders:
- It might reduce the executive’s control or influence over the organization.
- It might affect his or her productivity, concentration, and energy levels.
- Third, it can influence attitudes toward risk.
We examine these in detail, and ask:
- Should shareholders and boards be concerned when a CEO and spouse separate?
- Should the board make the CEO “whole” in order to restore equity incentives to where they were prior to divorce?
- Is divorce a private matter, or should companies disclose this information to shareholders?