The financial loss of shareholders in the event of a suicide of the CEO
With great respect to all the families of the deceased people, we emphasise that it is not about accusing anyone. We want to show that the responsibility of the Board of Directors also includes the mental health of management. In most listed companies, pension funds are among the shareholders. This responsibility is not just within the company, but also towards the general public.
In any case, the collapse of Freddie Mac’s share value cannot be attributed to the suicide of David B. Kellermann, but much more the CFO’s suicide being due to the high pressure of the employer in this desperate situation (one day before Kellermann’s death, the Freddie Mac human resources chief met with him and refused his resignation, asking him to take only a few days off instead (Source).
Our analysis thus points to two points; some boards of directors did not recognize the unstable mental health status while they were looking for business growth, others neglected their duties to senior management while a crisis was underway. It is the responsibility of the Board of Directors to protect shareholders from losses, but also to protect the lives of employees in both the eager pursuit of success and the crisis.
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