Red Flags You Won’t See on a CEO’s Resume

For a long time, we have believed that strong corporate governance
is enough to prevent CEO malfeasance. However, new research shows
that the lifestyle behaviors of executives can spell trouble for
companies, regardless of the guardrails in place. Aiyesha Dey, an
associate professor at Harvard Business School, has investigated
executives’ past criminal records and the cost of their homes and
automobiles. Her research has linked an individual’s materialism
and propensity for rule breaking to fraud, insider trading, and
risky business activities. She says that boards and other hiring
bodies should pay more attention to personal behavior when picking
organizational leaders. Dey wrote the HBR article "When Hiring
CEOs, Focus on Character."