Troubles at the Top
HR leaders should have a role to play when a board of directors is unhappy with the organization's CEO. That's what seems to have occurred in the recent leadership change at BNY Mellon, but it's a difficult -- and risky -- place to be. By David Shadovitz Want to land that sometimes elusive seat at the table? No problem. But don't assume it's going to be comfortable. The recent departure of Bank of New York Mellon's Chairman and Chief Executive Officer Robert Kelley serves as a vivid reminder of the precarious position HR leaders can sometimes find themselves in when a board concludes that a CEO needs to go. On Aug. 31, BNY Mellon announced that Kelly stepped down as chairman due to differences between him and the board over the way Kelly was managing the company. Press reports quoted sources who alleged Kelly was dismissed because of his abrasive management style. Kelly was immediately replaced as CEO by BNY Mellon President Gerald L. Hassell. Leading up to Kelly's resignation, BNY Mellon's independent directors met in small groups, with HR staff attending at least one of those meetings, according to CNBC. While it may be rare for HR leaders to be called before the board to provide input on their CEO's performance, experts says, precedent for it does exist. Still, that doesn't make it any easier for HR leaders to navigate the situation. It's a very difficult and challenging role for HR leaders, says Fred Foulkes, professor of organizational behavior at Boston University's School of Management. On one hand, he says, you have to please your boss. But you also have to have a relationship with the board through either comp or the corporate-governance committee. HR leaders need to tread carefully, Foulkes says. I'm aware of one case in which what the head of HR said to the board [regarding the CEO's compensation] eventually got that person fired. Foulkes cites another instance when the HR leader confronted his CEO because of her abusive language and behavior. It turned out to be a career-limiting move, he says. In hindsight, he says, the HR leader realized he should have brought in a coach. Coaches, he says, can be an effective way to address these issues. But not every CEO is open to that option, he says. Wayne Cascio, a professor at the Business School of the University of Colorado in Denver, says it's not that common for HR leaders to be brought in before a decision happens such as the one at BNY Mellon. Most of the time, HR isn't consulted and decisions are just made, he says. And that's unfortunate, Cascio says. We often talk about HR's relationship with the board, he says. Well, this is a great illustration of how HR can play a more strategic role. Board members aren't there day to day, but HR leaders are, he says. David Brookmire, founder of Corporate Performance Strategies in Atlanta, agrees HR leaders are in an excellent position to provide directors with meaningful feedback. But, he says, that doesn't make the dilemma facing HR leaders who are placed in that position any less real. My experience with CEOs is they really manage the board and know who's going to them, so it's especially difficult going around them, Brookmire says. Ideally, he says, it would be great if the HR leader could bring the issue directly to the CEO so he or she could change the problem behavior. But if the CEO is not self-aware, he says, that's often easier said than done. 管理新知 您可能感兴趣的文章 HR微语—员工离职的136现象？
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