Harvard Business Review (Digital)

Harvard Business Review (Digital)

1 Issue, September 2016

Joining a “Scandal Firm”

When stigmatized companies hire managers, the balance of power shifts to the individual. Those who seek to join a company that has weathered a scandal may get a premium for doing so. “When scandal firms survive,” one headhunter told us, “the people who move into them are compensated more positively than those who were there before.”
However, compensation is a blunt instrument, and search consultants are likely to look for candidates whose skills or experience make them a good fit for those particular circumstances. “Companies that have been through some kind of negative publicity absolutely have to exercise a little danger pay,” one recruiter acknowledged, “although it’s not just ‘Hey, you’ve got to pay out 40% more.’ Say that I knew John Doe lived in Europe before, and his family really wanted to move back; we could use that to our advantage.” One recruiter noted that taking a job with a scandal firm could be a worthwhile move for an early- or late-career leader—that is, a shorttermer with a high level of risk tolerance: “Some very aggressive, talented young people might take a job like that because…
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Harvard Business Review (Digital) - 1 Issue, September 2016

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