Should Microsoft Have Kept Mum On Gates, Nixed Employee Board Representation?

theodp writes: Video of Microsoft's Annual Shareholder Meeting in Dec. 2019, at which the company's Board of Directors dismissed the idea that employee Board representation was necessary to combat issues -- including sexual harassment -- takes on new significance in light of the company's response to a recent WSJ report that Bill Gates left the Microsoft Board in March 2020 amid a probe launched in late 2019 into a prior relationship with a staffer that was deemed inappropriate. 'Microsoft received a concern in the latter half of 2019 that Bill Gates sought to initiate an intimate relationship with a company employee in the year 2000,' a Microsoft spokesman said in response to the WSJ story. 'A committee of the Board reviewed the concern, aided by an outside law firm to conduct a thorough investigation.' At the 2019 Annual Meeting, Microsoft Board Chair John Thompson kicked things off by thanking shareholders for their trust before introducing the nominees for the board of directors who were in attendance, starting with 'Bill Gates, our cofounder.' Attention then turned to 'a shareholder proposal requesting a report on Employee Representation on the Board of Directors,' which shareholder advocate Mari Schwartzer argued was called for in light of 'alleged gender discrimination and sexual harassment within our company.' Unswayed by that argument, Microsoft Corporate Secretary Dev Stahlkopf responded that the Board had decided to nix the proposal as unnecessary, explaining that 'the Board is already deeply engaged on providing oversight of workplace culture,' which she noted included 'receiving direct feedback from employees through anonymous polls.' Schwartzer made the same proposal -- which again fell on deaf Board ears -- the next year at Microsoft's Dec. 2020 Annual Meeting. Gates was no longer on the Board at that time -- he resigned in Mar. 2020 just three months after his re-election for what Microsoft billed to the SEC as a chance to devote himself more fully to philanthropy, repeating the same reasons Gates provided in a self-published LinkedIn post (no connection was made between his departure and the Board's investigation, and a recent statement from a Gates spokesperson insisted, 'Bill's decision to transition off the board was in no way related to this matter'). However, the Microsoft Board of Directors made sure shareholders were aware of Bill's continuing influence at Microsoft in a letter included in Microsoft's 2020 SEC proxy filing. The Board wrote, 'This year, Co-Founder and Technology Advisor Bill Gates stepped down from the Company's Board of Directors to dedicate more time to his philanthropic priorities. He continues to serve as Technology Advisor to CEO Satya Nadella and other leaders in the Company. The Board has benefited from Bill's leadership and vision in innumerable ways over the years, and we are grateful for his contributions and insights.' In an interview on CNBC last Friday, Microsoft CEO Satya Nadella was pressed to address the issue of Bill Gates' acknowledged 2000 affair with a Microsoft employee. 'The power dynamic in the workplace is not something that can be abused in any form,' Nadella replied, 'and the most important thing is for us to make sure that everybody is comfortable in being able to raise any issues they see, and for us to be able to fully investigate it.' So, with all of the revelations and bad press, will Microsoft's Board reject the idea of Employee Board Representation for a third year straight while keeping mum on Gates later this year at the 2021 Annual Shareholders Meeting?

Read more of this story at Slashdot.