Bonnie Hancock Lends Expertise to WSJ on Challenges of Regulating Iconic CEOs

Bonnie, Hancock, executive director of the Enterprise Risk Management Initiative at the NC State Poole College of Management, was interviewed by the The Wall Street Journal in an article reporting on the challenges of effectively regulating iconic CEOs like Tesla’s Elon Musk.

Hancock noted that Mr. Musk’s personal wealth, estimated in the billions, cushions the impact of any potential financial penalties (Mr. Musk was fined $20 million as part of settlement with the SEC last year). And any action that curtails his leadership responsibilities risks hurting the value of Tesla because Mr. Musk’s identity is closely intertwined with the company’s value.

“It’s a situation where it’s hard to say what’s the right thing to do for the shareholders,” Ms. Hancock said. “It’s a horrible distraction that he’s created, but if they ultimately removed him as the CEO, that’s an even bigger distraction.” Read more in the WSJ.