Update: Monday, July 20, 3:20am ET - The Global Business Travel Association announced early this morning that the investigation into alleged workplace misconduct by CEO Scott Solombrino has concluded. New York-based law firm Polsinelli, which conducted the investigation, has cited no misconduct or legal wrongdoing on the part of Solombrino.
The GBTA board of directors reiterated in the press release, “No
misconduct or legal wrongdoing by Mr. Solombrino was found regarding these
allegations." Despite this, the board and Solombrino have agreed it is time for him to pursue other opportunities. The press announcement did not detail information about a financial exit package or whether such a package exists. This news is breaking and will be updated as more information becomes available.
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The Global Business Travel Association last week began a
90-day engagement with association management firm MCI USA to perform a
root-and-branch review of the organization after anonymous allegations of
leadership misconduct have raised concerns about internal fractures between
board leaders and staff.
"MCI USA is
best-in-class when it comes to analyzing non-profit, member-driven associations
like GBTA. We've retained them to look at every aspect of what we do, from the
role of the board to operations, staffing and human resources, IT, event
management and marketing," said recently appointed interim executive
director Dave Hilfman in a press statement.
According to the
release, the MCI USA engagement will culminate in the development of a clear
action plan for GBTA. "Our goal is to emerge from the pandemic in the best
possible position to serve our members as the leading voice of the global
business travel industry," said Hilfman.
Inside the
Organization
While Hilfman's official statements focused on assessing the
organization amid the Covid-19 crisis, which led to GBTA
staff layoffs, the MCI USA engagement
comes on the heels of organizational upheaval precipitated by anonymous
allegations of workplace misconduct and the subsequent investigation
and administrative leave of CEO Scott Solombrino. Solombrino's status with
the organization remains unclear even after GBTA named Hilfman its interim
leader. Results of the investigation—and whether it is complete—have not been
officially disclosed.
In the meantime, BTN has obtained a June 20 letter to the
board of directors signed by eight members of GBTA's senior leadership, each
with titles of VP and above, corroborating the anonymous allegations that
kicked off the investigation and citing "additional incidents" not
detailed in the allegations but that would be relevant to the investigation.
"It needs to be known that the leadership team
corroborated the allegations," said a source close to the issue, who asked
not to be identified for fear of retribution. The source also said the eight
signees were now fearful for their jobs in an environment where GBTA staff will
be interviewed individually by MCI USA to see what should be changed.
The concern is that perceptions of loyalty to the organization
could mix with assessments about job skills and effectiveness—not just for the
leadership members who openly signed their letter but also for staffers who
participated in the investigation into Solombrino if the organization cannot
ensure their confidentiality.
"Staff is terrified," said the source, who also
voiced concern that board members involved in current organizational
decision-making were cited as complicit in certain allegations. According to
the source, confidentiality of investigation participants hasn't been a
priority in the past.
The individual pointed to a 2017 board member investigation
handled by Polsinelli, the same firm in charge of the current investigation
into Solombrino. A summary report of the 2017 investigation, obtained by BTN,
detailed the first and last names as well as comments of several staff who
participated and agreed to be identified to the compliance
officer at Polsinelli to enable "a full and thorough investigation."
However, a former GBTA staff member with knowledge of how that report was
circulated internally told BTN the report with names included circulated beyond
that officer, even to the subject of the investigation. The investigated
party remains among GBTA's board leadership, and according to the staffer, no
official action was taken at that time.
BTN asked GBTA what steps the organization has taken to
ensure identities of those who participated in the current investigation would
remain confidential and separate from MCI USA audits and those responsible for
implementing recommendations. The organization declined to answer.
Trying to Move Forward
Despite the internal conflict, GBTA appears to be taking
steps to address systemic issues. Many industry figures have lauded
the choice of Hilfman, whose leadership skills and gregarious personality
are widely regarded to have the potential to help change the culture of the
organization. Both inside the association and among observers, however, many hope
the organization won't "paper over" past problems but will deal with
them head-on and with transparency.
The June 20 letter signed by GBTA leadership members emphasized
their dedication to the organization and stated they were "deeply
concerned about the financial future of the organization" and "its
ability to be representative and influential within the business travel
industry." It cited lost members, sponsors and other partners, as well as
a high staff turnover rate in the past year.
"I was on fire angry when I left
the organization," the former staff member told BTN, alleging that the human
resources staffer who conducted the exit interview balked at the idea of reporting
negative feedback to EVP Lisa Censullo and Solombrino. "I couldn’t even
have a real exit interview."
Former GBTA president and CEO Suzanne Fletcher, who served the
organization in that role from 2005 to 2007—when GBTA was known as the National
Business Travel Association—and who for years has been critical of bylaw changes
and board transparency, told BTN in late June prior to the MCI USA announcement,
"The only way [GBTA] will survive is to get a third party in there. … As
an organization, they need to take 15 steps back and take this down to the
studs with a new name, bylaws and board."
While the organization came to the same conclusion as Fletcher
about hiring a third party, the industry will have to wait at least 90 days to understand
the magnitude of the MCI USA recommendations. MCI USA's website markets the
firm as "transforming associations of all sizes from good to great,"
and claims expertise in board, committee and volunteer management; marketing
development; advocacy; education and certification; content development;
communications; meetings and exhibition management; membership support;
financial management; fundraising and technology systems to support operations.
According to the GBTA release, "More than a dozen senior business executives will be a
part of the MCI USA team examining GBTA's operations, policies, revenues and
growth possibilities, along with the return on investment the Association
provides its members."