In business, the standard of conflict-of-interest is "Did You Disclose"? So LendingClub's CEO got in trouble for not disclosing the conflict of interest. Achieving financial benefit on the side wasn't the issue - lack of disclosure was.
This actually creates worse governance issues, because you can't trust that execs will do the right thing. You can only trust that they'll tell the board, who may have conflicts of their own.
This actually creates worse governance issues, because you can't trust that execs will do the right thing. You can only trust that they'll tell the board, who may have conflicts of their own.