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Byron, and Cabot did not respond to Fortune’s request for comment. On Friday, the company released a statement addressing the incident. “Astronomer is committed to the values and culture that have guided us since our founding. Our leaders are expected to set the standard in both conduct and accountability,” it wrote. “The Board of Directors has initiated a formal investigation into this matter and we will have additional details to share very shortly.”
While the details of the nature of the relationship between Byron and Cabot are still unclear, the incident is certainly a public relations nightmare for the company and its HR department. It also serves as a warning signal for other C-suite executives about the appearance of mixing personal and professional relationships. The lives of CEOs today are constantly being scrutinized by the public, and careless mistakes can be very costly.
“Trust has been broken, and employee morale will likely suffer. The company’s public reputation has been damaged, and clients and investors may begin to question the company’s stability,” says Jennifer Vickery, founder and CEO of National Strategies Public Relations. She added there will be “severe consequences for the company’s culture, reputation, and financial stability.”
From a legal standpoint, the company would be smart to immediately launch an investigation into the matter, which is best done by outside counsel or another professional, notes William E. Grob, partner at law firm Ogletree Deakins. To have it performed in-house could “carry an inherent pall of suspicion and mistrust.”
“HR is the trusted conduit between senior leadership and the rank and file,” he says. “If that trusted relationship is compromised by the appearance of favoritism toward one side or the other, the efficacy of the position is damaged and likely irretrievable.”
