Boeing’s decision last week to sack CEO Harry Stonecipher after it learned about his relationship with a female executive raises a host of critical governance questions, and underscores how personnel policies are set—and resolved—at large public corporations.


Stonecipher Boeing said its board ordered an investigation after receiving information that was sent anonymously to board chairman Lew Platt and the company's legal and ethics leaders, according to the announcement at the time. Platt said Stonecipher was fired because the board determined the actions were inconsistent with Boeing's code of conduct, and that the facts “would impair his ability to lead the company."

"The ...