Madison Square Garden Entertainment and Barclays are fending off lawsuits claiming that the companies financially benefited from obscuring the relationships their chief executives had with sexual predators. The claims give rise to a difficult question: How closely should the personal relationships of CEOs be monitored by boards of directors?
Sabina Menschel, president and COO at global investigations firm Nardello & Co., said prudent companies will do these deeper dives into the backgrounds of executives and board members on a recurring basis. Most companies, however, do not take this route even when an executive has been promoted to a higher-profile role, she said.
