Howard Levitt's Essential Playbook for CEOs as Personal Risk Escalates
Chief executives in contemporary business environments confront personal legal, reputational and regulatory exposures that previous generations of leaders never encountered. According to prominent employment lawyer Howard Levitt, protecting oneself is no longer simply a matter of relying on corporate counsel or human resources departments. It demands strategic preparation, clear legal understanding and institutional alignment. Levitt provides a structured approach for navigating this heightened risk landscape.
1. Recognize Yourself as the Primary Risk Center
CEOs must fundamentally understand that they are often the de facto target in legal complaints, activist campaigns and regulatory scrutiny, not just their corporations. Personal liability exposure exists even for statements or decisions made with good intentions. Action: Systematically map all potential personal fault lines including public statements, social media activity, board communications and executive decisions that could trigger legal or reputational challenges.
2. Establish Direct Access to Independent Legal Judgment
While internal legal teams remain essential, they frequently operate within constraints of board politics, HR considerations and corporate bureaucracy that can delay or filter critical advice. Chief executives require independent counsel with specialized understanding of executive risk, employment law and crisis management. Action: Create a standing retainer arrangement with outside legal experts who can provide immediate guidance without organizational delays.
3. Rigorously Stress-Test Public Positions
Every public communication—whether speeches, interviews or social media posts—exists within an ecosystem capable of weaponizing ambiguity. Boards often underestimate this vulnerability, assuming compliance or public relations measures will mitigate risk. Action: Conduct comprehensive scenario planning and simulations for controversial statements, product launches or corporate stances, including worst-case reactions from regulators, media, investors and activists.
4. Ensure Board and Corporate Alignment
Institutional retreat represents a significant vulnerability during crises. CEOs must proactively ensure that boards, governance committees and HR leadership maintain alignment regarding personal exposure. Support must be pre-committed rather than improvised after attacks occur. Action: Formalize a crisis-response agreement that clearly outlines institutional support mechanisms when personal exposure arises.
5. Maintain Meticulous Personal Documentation
Comprehensive documentation of decision-making processes, communications and risk assessments proves critical when regulators, investors or litigants attempt to hold CEOs personally accountable. Action: Maintain detailed decision memos, meeting notes and risk assessments that demonstrate diligence and good faith in all executive actions.
6. Understand Employment Law Implications
As both employees and officers of their corporations, CEOs must recognize that certain employment-law protections may not automatically apply during liability situations. Many executives incorrectly assume severance or indemnification covers all scenarios. Action: Verify that coverage includes both speech-related and operational exposure to ensure comprehensive protection.
Levitt emphasizes that today's chief executives represent their companies' most exposed flank, with attacks mounting from multiple directions. His structured approach provides a necessary framework for navigating the complex intersection of personal and corporate liability in an increasingly litigious and scrutinized business environment.
