Share to linkedin ASSOCIATED PRESS As recent events at Tesla suggest, the departure of a company’s general counsel should almost always raise the yellow flag in the boardroom, no matter the circumstances. Director alertness should be enhanced, and a diligent inquiry into the circumstances should be conducted. For as it was with Tesla, so it is with other companies. The general counsel is no ordinary officer, and her departure is no ordinary event.
We’re reminded of this by the news that Tesla’s general counsel, a highly regarded attorney recruited from a prominent law firm, resigned after only two months on the job to return to his old firm. While the reason was reportedly a poor cultural fit, such a short tenure should always be cause for a raised eyebrow in the boardroom.
And that’s because with this position, when there is smoke, there could be fire. Certainly, the circumstances could be benign, as with the planned retirement of a long-serving general counsel or one who is moving to an even higher executive position within the organization. Indeed, the job could be a bad cultural fit for some people. But the circumstances could also be quite problematic.
We’re reminded of this by the news that Tesla’s general counsel, a highly regarded attorney recruited from a prominent law firm, resigned after only two months on the job to return to his old firm. While the reason was reportedly a poor cultural fit, such a short tenure should always be cause for a raised eyebrow in the boardroom.
And that’s because with this position, when there is smoke, there could be fire. Certainly, the circumstances could be benign, as with the planned retirement of a long-serving general counsel or one who is moving to an even higher executive position within the organization. Indeed, the job could be a bad cultural fit for some people. But the circumstances could also be quite problematic.