• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem

1

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
Leadershipsanofi

Sanofi’s CEO ouster: A snowball of bad judgment calls

By
Eleanor Bloxham
Eleanor Bloxham
Down Arrow Button Icon
By
Eleanor Bloxham
Eleanor Bloxham
Down Arrow Button Icon
October 30, 2014, 12:23 PM ET
Chris Viehbacher, Chief Executive Officer Of Sanofi Interview
Christopher Viehbacher, chief executive officer of Sanofi, speaks during an interview on Monday, Feb. 10, 2014. Sanofi last month agreed to pay $700 million for a 12 percent stake in Cambridge, Massachusetts-based Alnylam and access to rare-disease treatments being developed there. Photographer: Scott Eells/Bloomberg via Getty ImagesPhotograph by Scott Eells — Bloomberg via Getty Images
Add Fortune on Google for similar content.

Smooth successions and no surprises are what employees and shareholders want—but that’s not what the board at French pharma company Sanofi has delivered.

Early on Wednesday, the board issued a statement saying, “The Board of Directors held a meeting Wednesday, October 29 at 8am and decided unanimously to remove Christopher A. Viehbacher as Chief Executive Officer of Sanofi,” after six years of service.

That stood in contrast to the board’s statement on Monday, which said the board had “no agenda item regarding the succession of Chris Vienhbacher.”

A spokesperson for Sanofi could not provide any information on what might have changed over the course of those two days (beyond the statements the board provided).

According to Sanofi’s most recent 20-F filing with the SEC, the person responsible for board communications is Serge Weinberg, its chair. That chair has now become CEO as well.

On a conference call mid-day on October 29, Weinberg said that “leaks organized in the press” on Sunday had “forced” the board to make its decision Wednesday morning more quickly than it might have, to avoid “uncertainty” among shareholders and employees.

But who initiated the leaks to the media? And, given those leaks, why did Weinberg say what he said on Monday? Perhaps he wished to put off communicating with Viehbacher, but how can that help his credibility with shareholders or employees going forward?

Mid-day Wednesday, Weinberg disputed aspects of the media’s account of the CEO’s ouster but confirmed that the board had complaints about Viehbacher’s lack of communication with the board and deficits in execution and management style.

Lack of communication with a board is a terrific fault for any CEO, and one that boards should not tolerate. Boards naturally don’t want to be surprised, and they want a full flow of information from management and others in order to do their jobs. Weinberg said Project Phoenix, a Sanofi initiative related to the sale of mature drugs in Europe, was “an illustration” of the communication lapses. The board found out about the project in the press, Weinberg said, and would have nixed it had they known.

Clearly, CEOs have responsibilities to communicate to the board. Boards and independent chairs, however, also owe the CEO candid and timely communication in return.

Many boards today want the executives they work with to be forthcoming but have not clearly specified to the CEO what they want to know, when they want to know it, and in what form. They’ll complain after the fact that they’d like to have heard more about some topic, but they never made clear in advance what they wanted or needed.

Of course, great CEOs anticipate their board’s needs. But boards need to help out. Many boards could be far more useful if they did what boards are supposed to do: look beyond the day-to-day and anticipate the trends that will shape the company’s future.

In the Sanofi board’s case, it’s all too clear that there were lapses in communications and oversight. During Wednesday’s conference call, Weinberg said the board had discussed concerns about Viehbacher in mid-summer. But according to several news sources (including Les Echos, Bloomberg, the Financial Times, and Reuters) it was just last month that Viehbacher got a whiff of the board’s discontent and wrote a letter to them on September 4 making the case that he should stay on as CEO.

Boards often have a hard time confronting CEOs each step of the way and saying no when they should. Between CEOs and boards, things often snowball from there.

Viehbacher moved from France to Boston in June, which caused some communications difficulties, Weinberg admitted. But regarding where the CEO lived, Weinberg showed how little the board was in charge and his own ambivalence about the board’s level of oversight. He said Viehbacher moved to Boston without any disagreement from the board. In fact, Weinberg described it as a personal decision.

Unless the company is run entirely outside an office, where a CEO chooses to live will affect their managerial effectiveness. It’s not a personal decision. CEOs should not be off-campus and boards have to weigh in and say no to requests that could hurt the company or its stakeholders.

According to Sanofi’s 20-F filing, the chair “shall ensure that Directors have access on a timely basis to clear and appropriate information required for the performance of their duties.” If Viehbacher was in Boston, maybe Weinberg should have moved there too.

Now the board is looking for successors mainly from the outside, Weinberg said. A well-thought out succession plan was apparently not a top board priority.

As it sets about finding a new CEO, it would behoove Weinberg to consider his own role in this mess and the board’s efficacy. For example, Sanofi’s board reviews its performance only once every three years, according to the 20-F. Also, these days, effective boards meet in executive session at each board meeting and give the CEO solid feedback straightaway; something that Sanofi was not doing. Independent chairs should be providing guidance and constructive criticism week-to-week and even day-to-day, if need be.

Other practices at Sanofi also fly in the face of good governance. One example? Directors “may choose to be represented by another Director at meetings of the Board of Directors.”

In-person attendance at board meetings fosters far better communication and deliberations between board members, but it looks like Sanofi directors appear to attend these meetings by call or video so regularly that the company has set up a separate pay scale based on their location. “The attendance fee payable to a Director who participates by conference call or by videoconference is equivalent to half of the attendance fee received by a French Director who attends in person,” the 20-F filing states.

I’m not sure why a director’s country of origin has any effect on director pay, but certainly the policy does nothing to foster the image Weinberg tried to convey on Wednesday: that Sanofi is an international company, not a French one.

Abrupt CEO ousters reflect poorly on a company’s governance. But on the call, Weinberg said he believed governance worked well at Sanofi. The role of governance is “not to solve problems when they are obvious to everyone. It’s to assert the risk factors that could increase and generate further problems at a certain stage. It’s the duty of a board to evaluate this,” he said.

How true. And too bad then that he and the board waited so long to address CEO succession, until the problems hit the press and the board was caught with no plan.

Listening to Weinberg you get a sense of his own imperiousness. On the call, he chided the press for “spin,” and, given his explanations, said there are “no other issues than the ones we have described, so there is no reason to have any sort-of speculations.” He told one analyst that the call was not the place for him to provide a CEO job description.

Given this backdrop, what CEO will jump at the chance to work with Weinberg? That’s the million-dollar question. Sanofi and Weinberg are clearly grasping at straws.

Eleanor Bloxham is CEO of The Value Alliance and Corporate Governance Alliance (http://www.thevaluealliance.com), an independent board education and advisory firm she founded in 1999. She has been a regular contributor to Fortune since April 2010 and is the author of two books on corporate governance and valuation.

About the Author
By Eleanor Bloxham
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Leadership

buffett
SuccessWealth
‘The man who dies rich dies disgraced’: The last time America had such wealth inequality, Andrew Carnegie knew he had to give it all away
By Nick LichtenbergJuly 22, 2026
7 hours ago
Larry Page and Sergey Brin
SuccessBillionaires
Larry Page and Sergey Brin splash $225 million in Miami property as billionaires flee California’s tax—and Google is expanding its office there too
By Emma BurleighJuly 22, 2026
9 hours ago
Warren Buffett called Bill Gates’ Epstein ties ‘distasteful’ and pulled out of the Gates Foundation. Days later, a review revealed 30 meetings
North AmericaWarren Buffett
Warren Buffett called Bill Gates’ Epstein ties ‘distasteful’ and pulled out of the Gates Foundation. Days later, a review revealed 30 meetings
By Sydney LakeJuly 22, 2026
9 hours ago
Jon Gray leans while talking and sitting in a chair
SuccessCareers
Blackstone president Jon Gray tells Gen Z to think like founders at work—but a growing number are skipping the corporate ladder to become one for real
By Preston ForeJuly 22, 2026
9 hours ago
clark
North AmericaMedia
Ryan Clark found out he was fired live, mid-broadcast, on NFL Live as ESPN undergoes first major layoffs in 3 years
By Joe Reedy and The Associated PressJuly 22, 2026
10 hours ago
A woman observes stock trends on her smartphone while a computer screen displays financial graphs.
NewslettersCFO Daily
Beyond SpaceX: Why great IPOs depend on more than first-day demand
By Sheryl EstradaJuly 22, 2026
12 hours ago

Most Popular

OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
1 day ago
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
1 day ago
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
7 hours ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
1 day ago
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
Success
‘I want to die broke’: Billionaire philanthropist Denny Sanford dies after giving away $4 billion
By Sydney LakeJuly 20, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.