In a follow up article in today’s Milwaukee Journal Sentinel business pages…it seems that the expectation outside of Johnson Controls…is that CEO Molinaroli should lose his job for his incredibly poor judgment in his ‘relationship’ with a convicted Ponzi scheme con artist:
“There is no such thing as strictly personal transaction when it’s the CEO’s business transaction,” said Richard Painter, University of Minnesota law professor and former chief ethics lawyer for the White House during PresidentGeorge W. Bush’s administration. “The board needs to find out what happened.”
“It sounds like really bad personal judgment,” said David Whiston, an analyst who follows Johnson Controls for Morningstar Inc. “There’s no direct risk to the company, but when you have concerns about the leader’s personal judgment, the concern is, does that bleed over to business judgment? It just raises a risk.”
Sarah Peck, a Marquette University finance professor, said this latest controversy should cost Molinaroli his job as head of the $43 billion company, which employs about 130,000 people worldwide. Last year, the Johnson Controls board cut Molinaroli’s pay package by $1 million, bringing it down to $19.5 million, because he failed to promptly disclose that he was having an affair with a company consultant.
“He’s now shown two instances of very poor judgment,” Peck said, predicting he could be ousted within a month. “It is becoming very difficult for people to trust his character and leadership.”
Fraser Engerman, a company spokesman, said Monday that “Alex is the CEO and continues to be the CEO …He has the full backing of the board of directors.”
Well…not so likely after all of the negative press this is garnered.
For my original post on this subject click here.