Last week, though, the fight took an unexpectedly nasty turn. In a brief, one paragraph press release, WR. Grace cited damning new grounds for Bolduc’s dismissal: allegations that he had sexually harassed several female employees. Newspaper reports said that five women had complained of unwanted comments and physical contact. The company itself offered no details, except to say the complaints had been investigated by a respected retired judge. The women making the charges chose to remain anonymous. Bolduc, who “vehemently denies” the accusation, was never given a chance to confront his alleged victims.
Wall Street insiders see more corporate politics behind the melodrama. While the charges may well have merit a source faults Bolduc with the retrograde habit of referring to female colleagues as “doll” and “babe”-the company’s extraordinary announcement raises a host of troubling questions. If the board thought Bolduc guilty of wrongdoing, why was he given a $20 million severance package reportedly a third more than his contract required? Such largesse sends “a mixed message,” says former SEC official Joseph Grundfest. And if Bolduc committed misdeeds over the course of several years, why investigate him now? Even women’s groups had qualms. “Sexual harassment may have occurred,” says Kim Gundy of the National Organization for Women, “but the motivation for action against [Bolduc] clearly came from elsewhere.” Stay tuned.
