Where Do You Draw the Line Between a CEO’s Corporate and Personal Life?

Chief Executive

Chief Executive

When CEOs need to blow off steam, many turn to extreme hobbies like racing yachts, flying planes or even space travel. But since these activities are dangerous (and can be fatal) should corporate boards be allowed to regulate a CEO's extracurricular activities? Where do you draw the line between a CEO's corporate life and his personal life?

As evidenced here, chief executives relieve their stress through many different hobbies or projects.  Flying airplanes is a common past time. The CEO of Cirque du Soleil, Guy Laliberte, took flight in an even more extreme fashion when he was Canada’s first private space tourist.

But flying is dangerous. Last month, Micron Technology CEO Steven Appleton was killed when piloting a single engine aircraft.  Appleton’s accident caused The Wall Street Journal to ask whether boards of directors should be allowed to restrict CEOs from participating in certain activities (the focus of the article was on flying airplanes).

That question should be even broader: where is the line between a CEO’s corporate life and personal life?

A CEO’s livelihood is extremely important to a company’s success, so is it fair for the board to restrict a CEO’s activities? When a person becomes a big-time CEO does their personal life disappear?

Some people, including one CEO, see a responsibility to monitor hobbies:

  • “The Micron tragedy should be a wake-up call for boards. [The CEO’s hobby] is something the directors should be worried about…boards should consider tucking a CEO’s highly dangerous recreational behavior into their risk-factor disclosures” – William M. Mower, partner at Maslon Edelman Borman & Brand LLP
  • A CEO has “a responsibility that goes beyond your private life…You give up some of your freedoms.” – CA CEO Bill McCracken
  • “To the extent they can be, they should be controlled.” Scotts Miracle-Gro CEO Jim Hagedorn says of CEOs with risky hobbies

One lawyer noted that if CEOs do participate in risky behavior, their boards should make sure to have a strong and well-planned succession plan in case of an emergency.

Not everyone thinks that it’s fair for a board to regulate executives’ personal lives and hobbies:

  • “I don’t need a member of the board who doesn’t know a prop from a jet telling me what to do.” – Calamos Asset Management founder John Calamos Sr.

Where is the line? And should companies disclose their CEO’s hobbies?

 

Read: Executive No-Fly Zone?


Chief Executive

Chief Executive

Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.

MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry

    • upcoming events

    SUBSCRIBE TO THE CEO BRIEFING

    In our weekly newsletter, get insight into the biggest issues facing CEOs, along with strategic ideas, solutions, and interviews.

    GET IN TOUCH

    Facebook Twitter Linkedin
    Chief Executive Group

    Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.

    Publications

    Communities

    About

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    We are in a period of rapid change. Customer needs, technologies, competitors and internal capabilities require companies to review and update their strategies for the new realities. In this workshop, strategy experts Steve Rutan and Denise Harrison will show you a systematic approach to strategic planning to help you refine or redefine your business strategy and approach including:

    • Learn what you need to know to develop an effective strategic plan. Put the right players on the strategic planning team.
    • Develop strategies that leverage your company’s unique position in the marketplace. Lift your management team beyond “business as usual” thought processes and activities.
    • Translate your strategies into action. Achieve your vision for success and generate superior financial results.
    • Identify exactly what you need to do now to position your company for future success.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.