Update 20 July: The GBTA 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.
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 organisation 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 analysing
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 organisation
While Hilfman's official statements focused on assessing the organisation amid
the Covid-19 crisis, which led to GBTA staff layoffs, the MCI USA engagement
comes on the heels of organisational upheaval precipitated by anonymous
allegations of workplace misconduct and the subsequent investigation and
administrative leave of CEO Scott Solombrino.
In the meantime, BTN has obtained a 20 June 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 organisation
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 organisation cannot
ensure their confidentiality.
"Staff is terrified," said the source, who also
voiced concern that board members involved in current organisational
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 organisation 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 organisation 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 organisation. Both inside the
association and among observers, however, many hope the organisation won't
"paper over" past problems but will deal with them head-on and with
transparency.
The 20 June letter signed by GBTA leadership members emphasised
their dedication to the organisation and stated they were "deeply
concerned about the financial future of the organisation" 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 organisation,"
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 organisation 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 organisation, they need to take 15 steps back and take
this down to the studs with a new name, bylaws and board."
While the organisation 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."