Protected Reputation, Obtained Severance Pay for Harassed Female CEO

As support for women in executive leadership stagnates, those who experience workplace discrimination are sometimes forced to choose between money and reputation. 

In this case, our client chose her reputation. 

For context, our client was this national company’s first female CEO, achieving measurable success during her tenure. Her success was recognized with a positive job review and a significant bonus, or so she thought. 

Unfortunately, this performance review 18 months into her position was her only indication of how she would be evaluated, and she identified specific target areas she wanted to improve. She sought this feedback but received no responses. Instead, she was awarded a $30,000 base salary increase. 

Imagine our client’s surprise when, a month later, she was pulled into an impromptu meeting and handed a Performance Improvement Plan (PMP). 

In theory, a PIP is an opportunity to work with an employee to address performance concerns. One recent poll found that 41% of recipients fulfilled their PIP obligations and remained in their roles. But our attorneys find this survey result generous.

In practice, a PIP often serves as a key indicator that the employer is preparing to terminate an underperforming employee. Still, our client took action to implement the PIP. She even voluntarily rescinded the salary increase. This effort was never acknowledged, and her salary was never adjusted. 

To make matters worse, the company’s board proceeded to amend the PIP, moving the benchmarks and deliberately obfuscating their requests to make them unobtainable. At the same time, our client dealt with an escalating number of derogatory comments and baseless accusations from the president about her commitment to the company. She tolerated this harassment until her termination. 

Our attorneys saw an opportunity to take this company to court. However, after careful consideration, our client felt there was more value in negotiating a reasonable settlement. Following several rounds of negotiations, we were able to secure a six-month salary payout and continuation of her health insurance benefits for one year. This outcome enables our client to seek a new executive leadership role within her industry without fear of a tarnished reputation.