1. Confront the reality of the situation.

2. If it is currently "secret", assume it won't be for much longer.

3. Establish the facts of the situation.

4. If the CEO's behaviour can be remedied, then begin remedial action immediately you have established a remedial strategy. Develop a public statement for circulation if and when required.

5. If the CEO's  behaviour cannot be remedied (and the ramifications will negatively affect the corporation while the CEO remains), then dismiss the CEO and appoint a temporary CEO. Catch your breath and find the best person for the job.

6. Ask yourself (i.e. the board) why the behaviour was able to occur; and what needs to be done now to avoid a repeat.)

7. Start intensive cultural change initiatives if they are indicated.

8. At all times be honest; confirm your belief in your employee's honesty, integrity, intent and morality; ensure that your organisation's cultural management disciplines are as good as you can make them.