Successfully advising a client regarding its managing director’s behaviour

Thomson Snell & Passmore were instructed by a retail and wholesale business that needed advice regarding its managing director’s behaviour.

The client had undertaken a 360° review of its senior management, including the managing director. During this process the managing director cornered several junior team members who were taking part in the review. This undermined the review and demonstrated a serious lack of judgement on the part of the managing director. The outcome of the 360° review revealed that staff members had little to no faith in the managing director’s leadership or relationship-building skills. In addition, the managing director was angered easily and his behaviour had led to several resignations from more junior team members. The client asked for advice on how to manage the situation.

Nick Hobden provided practical advice to address the managing director’s temper issues through conselling using cognitive behavioural therapy. Nick also advised on how serious a disciplinary case there was, in the light of case law around managers undermining 360 degree reviews being misconduct offence. Nick advised on the evidence that should be compiled for the disciplinary process.

Under the structure of the protected conversation, the managing director initially stated that he would accept a settlement equalling one year’s salary. In light of his unsuccessful tenure as managing director and the likelihood of dismissal if a disciplinary process was initiated, this was wholly inappropriate. With Nick Hobden’s assistance our client successfully negotiated this down to 8 weeks’ salary and a settlement agreement was quickly completed.

Given the seniority of the individual it was important to the client that the matter was brought to an end with minimal disruption to its business and at minimal cost. Nick Hobden, with the assistance of his employment team, effectively managed the matter from an early stage and as a result swiftly brought it to a successful conclusion.