Ethics Newsline®

WASHINGTON
The American Red Cross last week fired its president, Mark Everson, after learning that he had been involved in a “personal relationship” with a subordinate.

Everson, the former commissioner of the Internal Revenue Service, had been on the job only since last May. He was hired during a restructuring drive as the charity tried to respond to criticism over its handling of hurricane Katrina, according to the Associated Press.

Bloomberg reports that the organization’s board was told about the relationship during the previous week. When confronted by the board, Everson admitted the affair. The female subordinate, who remains employed by the Red Cross, was not identified by the organization.

According to the trade journal Nonprofit Times, a source close to the incident described the board members as “livid,” saying they have launched an audit to determine if any of the charity’s money was spent in furtherance of the affair. “If he spent a dime, or bought a dinner, they are going to want it back,” the source said.

While some have praised the board for its swift and certain action, others argue that the firing was an overreaction, contending that other sanctions, such as unpaid leave or a pay cut, would have sufficed. The Chronicle of Philanthropy cites one observer who said the precipitous firing “wasted the 18 months they spent searching for him, any money spent on that search, and his six months’ worth of learning.”