On June 18, the board of retailer American Apparel informed the company’s controversial founder, Dov Charney, that it was ousting him from his roles as chairman and CEO. For years, Charney had fended off sexual-harrassment lawsuits and rumors of inappropriate behavior. But only when the company’s creditors grew anxious about its long-term liability did the board decide to take action, citing new and damning revelations, as reported by Elizabeth A. Harris in the New York Times.
As the saga continues to unfold, it has highlighted several dimensions of negotiation that managers and executives would be wise to heed—including the importance of continually assessing your BATNA, or best alternative to a negotiated agreement.