Case Study – Recovering from a Leadership Crisis

The board of directors of a leading global chemical and materials company removed three top corporate executives after an internal investigation found that the executives engaged in unethical financial practices that delayed the filing of the company’s year-end financial statements. 

Our Role

Our team was engaged by the board of directors and the interim management team to advise on the establishment of a response program to manage the crisis, including with investors, employees, partners, and customers. 

We were on the ground with the client for several months, working closely with the company’s interim leadership team and external legal advisors to establish a sense of order and normalcy while we worked simultaneously to recover from the crisis. We also met regularly with the board and its financial and legal advisors to ensure alignment with management and mitigate risk to the board, while also managing the proxy process. 

Our Impact

Over the course of several months, multiple public announcements, and regular internal communications, the company was able to recover nearly all the market value lost after the initial announcement of the crisis, establish stronger internal controls, report its year-end financials, achieve strong support for the board in its reelection, and manage several potential activist threats that emerged during the crisis.