A paranoid level of security, such as tightly locked executive offices and a desire to control information, could mean that he’s doing
something he wants to keep secret.
A fast turnover of top financial executives, especially the CFO,
is a classic way of hiding things.
Animosity toward the internal or external audit team, or allegations that
they’re nitpicking, may indicate that someone is getting too close.
Sexual harassment might be a tip-off. Anecdotal evidence suggests
that executives bending one set of rules feel that
other rules don’t apply to them either.
Excessive coziness with customers or suppliers could be
a giveaway to kickback schemes.
Of course, there may often be innocent explanations. Locked doors can make sense, particularly if a merger is in the works. If you’re worried, confront your CEO—and measure his reaction. If warning signals still go off, ask an independent investigator to quietly check things out.
