Ms. Suzy Wetlaufer, then-editor of the Harvard Business Review, interviewed former GE CEO and business legend, Jack Welch, for a piece in the business magazine. She asked in December 2001 that the piece be withdrawn because her objectivity might have been compromised. Those at the magazine did another interview and published that interview in the February issue of the magazine.

Soon afterward, the editorial director of the magazine, Walter Kiechel, who supervised Ms. Wetlaufer, acknowledged that a report in the Wall Street Journal about an alleged affair between Ms. Wetlaufer and Mr. Welch was correct and that Mr. Welch's wife, Jane, had called to protest the article's objectivity. At that time, Mr. Welch refused to confirm or deny that there had been an affair. Ms. Wetlaufer was, at the time of the interview, divorced.

Some staff members asked that Ms. Wetlaufer resign from her \(\$ 277,000\) per year job, but she initially survived termination. Their objections were that she compromised her journalistic integrity. Mr. Kiechel, on the other hand, noted that she did "the right thing in raising her concerns."75 After the article appeared in print and following 13 years of marriage, Jane filed for divorce. The Welches did have a prenuptial agreement, but that agreement expired after 10 years, leaving Mrs. Welch entitled to one-half of what was estimated at that time to be Welch's nearly \(\$ 1\) billion net worth. \({ }^{76}\) The result was a battle over assets that spilled over into the business and popular press. The documents filed in the divorce proceedings proved to be quite revealing about Mr. Welch, his finances, and GE.

Mr. Welch asked the judge to deduct \(\$ 200\) million from his assets as the amount he has pledged to his four children from his first marriage, an arrangement that was part of his divorce settlement with Carolyn B. Welch. \({ }^{77}\) That request was refused because the pledge only takes effect at Mr. Welch's death and does not eliminate lifetime obligations to any current spouses. Mr. Welch told the judge, "This is taking up too much time. I'd like to get on with my life and have her get on with her life. These issues are all resolvable..................

Discussion Questions
1. Was there a conflict of interest for Ms. Wetlaufer if there was an affair between her and Mr. Welch?
2. Were the staff members correct to protest?
3. What were the consequences of Mr. Welch's affair and divorce? Is it troublesome that he and Ms. Wetlaufer are so successful?
4. Does Mr. Welch rationalize his post-employment perks?
5. Did the headline of the newspaper test apply to Mr. Welch's original contract terms?
6. Are there any credo elements you find from either Mr. Welch or Ms. Wetlaufer?