News & Insights

Directors Governance Center

December 17, 2013

Theft of Trade Secrets – The First 48 Hours

While routine employment matters are the domain of management, when a senior executive abruptly resigns or is terminated, directors can find themselves thrust into the middle of the process. Overseeing a senior management transition raises numerous issues, not the least of which is ensuring that a departing executive does not misappropriate confidential or proprietary company information. In some cases, however, an executive may attempt to use his former companys trade secrets in a new position. This article outlines practical actions a company can take in the immediate aftermath of a departure to prevent, or at least limit the damage from, any misappropriation.