Being new on the job as a CFO means you’re in the spotlight, and it’s time to make a good impression. But Tyson Foods Inc. CFO John R. Tyson, the son of the chairman of the company’s board of directors, is facing serious allegations a month into his appointment.

Tyson, 32, was arrested this past weekend for public intoxication and criminal trespassing, according to reports. Detainee information released by the Washington County, Ark., sheriff’s department states he was arrested in the early morning of Nov. 6 and released later that day. A woman in Fayetteville, Ark. called the police when she found Tyson, whom she said she doesn’t know, in a bed in her home, according to local reports by KNWA Fox24. Police said they tried to wake Tyson up at the scene, but he was incoherent, briefly waking up and going back to sleep.

A company spokesperson told KNWA in a statement: “This is a personal matter, we have no additional comment.” I reached out to Tyson Foods but didn’t receive a response as of press time.

Tyson was named EVP and CFO of the Arkansas-based meat company, effective Oct. 2. He is the son of board chairman John H. Tyson and the great-grandson of Tyson founder John W. Tyson. John R. Tyson previously served as the company’s EVP of strategy and as chief sustainability officer. Before joining Tyson Foods in 2019, he held various roles in investment banking, private equity, and venture capital, including at J.P. Morgan. Tyson succeeded Stewart Glendinning, who transitioned from his role as EVP and CFO to take on the position of group president of prepared foods. 

The company is scheduled to release its latest 2022 quarterly financial results on Nov. 14. That’s the first time Tyson would participate in an earnings call as CFO. “We delivered solid operating income of nearly $1 billion because of our diversified portfolio; year to date, we are up 15% over prior year,” Tyson Foods CEO Donnie King said in August on the earnings call for the period ending June 30. “Overall, earnings per share came in at $1.94 for the third quarter and $7.10 year to date.”

Tyson Foods may be a family-founded company, but it’s also a public company. 

“This will be a critical moment for Tyson Foods and corporate governance,” Shane Goodwin, associate dean for Executive Education and Graduate Programs at the Cox School of Business at Southern Methodist University, told me. Tyson Foods has a dual-class share structure, which means the family of the founders have tremendous influence over the company, says Goodwin who teaches an MBA corporate ethics course. The Tyson family owns 99.9% of its Class B shares, giving them the ability to outvote the Class A shareholders 10-1, and shareholders know the family has the power, he says.

However, being a public company, Tyson Foods has “many stakeholders to consider not only shareholders, but customers, employees, and the community,” Goodwin says.

As CFO, Tyson receives “an increased base salary of $650,000 and an increase in his target annual incentive payment under the Company’s Annual Incentive Compensation Plan for senior executives from 90% to 110% of his annual base salary, with the actual annual incentive payment payable based on performance,” according to the company’s form 8-K filed on Sept. 27. 

Goodwin says companies should always emphasize ethics for executives, both on and off the clock. “There is no exception to this,” he says. “I know many want their private life to be ‘off limits.’ And it is—unless one is violating laws, rules, ethical judgments, etc. Admittedly, situations are different. The alleged circumstances around this situation are very serious.”

I asked Goodwin what approach Tyson’s CEO and the board should take when it comes to this alleged incident. “Everyone is innocent until proven guilty—that is a bedrock of our country,” he says. “So, I would ensure the process plays out properly. I would follow any policy that we already have in place. Do not change that policy.” For example, if the company allows employees to continue working until a legal matter is fully adjudicated, it should continue doing that, he says.  

“However, if they have a history of suspending or dismissing employees then they have to follow that precedent,” Goodwin says. “Personally, in my honest opinion, if I were [the chairman] in this situation, I would immediately suspend my son. This lapse of judgment cannot be tolerated for such a serious job.” But Goodwin added, “I also believe we live in a world of second chances and we need to support those going through challenging times.”

One thing’s for sure, the family’s support for Tyson will be watched publicly.

See you tomorrow.

Sheryl Estrada
sheryl.estrada@fortune.com

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Big deal

The latest S&P Global Market Intelligence data found consumer discretionary remained the most shorted sector, with 5.14% short interest. The energy sector, which saw its S&P 500 stocks rally nearly 25% in October on high oil and gas prices, was the second-most shorted U.S. sector at 4.01%. However, short sellers increased their bets against the industrial sector in October, according to the report. As of mid-month, short interest in industrials was at 3.08%, the highest level since 3.19% in mid-July.

Courtesy of S&P Global Market Intelligence

Going deeper

"5 harmful ways women feel they must adapt in corporate America," a report in Harvard Business Review, discusses new research. The authors detail that "high-performing women often pay a hefty price—in the form of intense pressure, mental and physical health issues, and unsustainable workloads—by staying in their jobs," according to the report. Thousands of high-performing professional women were surveyed, revealing five maladaptations most women have endured to rise in corporate America.

Leaderboard

Carl Anderson was appointed CFO at XPO Logistics, Inc. (NYSE: XPO), effective Nov. 8. Anderson will replace Ravi Tulsyan. Anderson most recently served as CFO of Meritor, Inc., a global supplier of OEM and aftermarket parts. His 25-year career in transportation includes earlier positions with Meritor, a Cummins company, including group vice president, finance; treasurer; and director, international capital markets, market risk management, and corporate insurance. Earlier, with General Motors Acceptance Corporation, he served as senior manager, structured finance, and senior financial analyst for the financial planning group. Anderson began his career as a senior financial analyst with First Chicago Corporation.

Robert J. Stefani as SVP and CFO of Southwest Gas Holdings, Inc. (NYSE: SWX), effective Nov. 30. Stefani succeeds Gregory J. Peterson, who will retire. Stefani will serve as a member of the Southwest Gas executive team. He comes to the company from PECO Energy, where he was SVP, CFO, and treasurer, with responsibility for all financial activities. Before joining PECO, he served as the VP of corporate development at Exelon, PECO's parent holding company. Stefani also worked within Caterpillar Inc.'s Strategic Investments team. Before his experience in Corporate Development, he worked as an investment banker at Citigroup and Marathon Capital.

Overheard

“The clock is ticking. Greenhouse gas emissions keep growing, global temperatures keep rising, and our planet is fast approaching the tipping point that will make climate chaos irreversible. We are on a highway to climate hell with our foot still on the accelerator.”

—UN Secretary-General António Guterres issued this alert to audiences at the COP27 climate conference in Egypt on Monday, Fortune reported.