A startup fired its CEO for expensing $76,120 at strip clubs
Scott Lang, the new chief executive officer of Turvo, wants to emphasize an important corporate policy at his startup: Employees may not entertain clients at strip clubs and certainly not bill those trips to the business. The rule is salient because his predecessor was fired for doing just that.
The board accused the co-founder, Eric Gilmore, of expensing $76,120 at strip clubs over a three-year span and removed him as CEO in May, according to legal filings. Gilmore, 39, didn’t deny the accusations, but he sued the company, claiming the board didn’t follow the proper protocol for his termination. Turvo said it did, and they settled in September. Gilmore declined to comment through a spokesman.
Lang, a former executive in the energy industry, joined Turvo just before Thanksgiving. The Silicon Valley startup makes software to help companies track the movement of freight and is backed by about $85 million in venture capital. In his first interview since taking the job, Lang said he’s focused on helping the company move past the scandal. When asked about trying to win over prospective clients at stripper joints, he said: “Never have. Never will.”
The situation at Turvo, which hasn’t been previously reported, illustrates the steps some boards are taking to quietly address allegations of misconduct before they become public. The #MeToo movement has claimed the jobs of many technology executives, such as Kris Duggan of Betterworks Systems Inc. and Andy Rubin of Essential Products Inc., and venture capitalists Justin Caldbeck and Shervin Pishevar. Often, the consequences only arrive after allegations are published in the news.
https://www.msn.com/en-us/money/companies/a-startup-fired-its-ceo-for-expensing-dollar76120-at-strip-clubs/ar-AAK6paa?li=BBnbfcN
