Discussion Question Heimdall Corporation’s board of directors hired a new CEO, Essa Alharbi. The Executive Search Firm t

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Discussion Question
Heimdall Corporation’s board of directors hired a new CEO, Essa
Alharbi. The Executive Search Firm that hired him found that in
their search of over 200 candidates, he was the most qualified. He
had extensive experience in helping businesses succeed. After the
Board of Directors hired him, 11 months into the job, the company
experienced significant losses in revenue and market share. As a
result, the Board forced him to resign but paid him a handsome sum
to leave the company, as was customary in this situation. A group
of shareholders filed a lawsuit against the Board of Directors
indicating that they were liable for the hiring of the incompetent
CEO, and demanding they reimburse the shareholders for their losses
due to his actions.
Are the members of the board liable for hiring Mr. Alharbi, and
for the losses of the company?