A recent study found that candidates for CEO positions go through less background screening than new graduates seeking entry level positions. The theory is that top positions are typically filled through networking among board members and other senior level executives. To the extent that the CEO is often the face of an organization and the spokesman for the company to the general public, it seems absurd that even a widely known candidate for a top position wouldn’t be carefully checked to insure that the fit is there and that the appropriate steps are taken to insure risk mitigation.
Worse yet, if an inappropriate hiring decision is made, the cost of replacing a CEO has historically been three times the annual salary for the top job.
Finally, if a well-known candidate is offended that a prospective employer wants to do a background check, that would be the biggest red flag of all that he probably isn’t the right person for the job!