Okay -- you're chairman of the board of a regulated company. You pick up the newspaper one morning and read that your wildly successful CEO has been caught violating a well-established regulation governing your company's business. This is a regulation you know well, because earlier in the year, the regulator sent letters to all of the participants in the industry reminding them about the importance of complying with the regulation. In fact, it is a poorly kept secret that earlier allegations about your company and CEO violating this rule were what prompted the regulator to issue the reminder.

As a result of this newest violation, the regulator has fined the CEO and the company, and has ruled that the company cannot bid on an important upcoming project, and this can have potential implications for your company's competitive position for years to come. As importantly, the scandal is being widely reported on radio and television, and is the topic of considerable coverage in the papers as well. Your company's reputation has taken a huge hit as a result of the actions of your CEO.

What do you do with your CEO? Do you promote him? Tolerate what he's done? Discipline or coach him? Do you fire him?

I'm guessing that most of you would select an option other than promote or tolerate. I'm guessing some of you might even say he should be fired. CEO's of recent vintage have been removed for less. What do you do?

Well, if you're the owner of the New England Patriots, apparently you do nothing.

Your thoughts??