Forbes has reportedly let go of its top editor after it was disclosed that he secretly received up to $6 million from the founder of a company that collaborates with the magazine.
Chief content officer Randall Lane was dismissed due to compensation linked to RJ Shook of Shook Research, a firm that partners with Forbes to develop rankings of wealth advisors, as mentioned in a report by The New York Times.
Details surrounding why Mr. Shook, who sold his company to a private equity firm, compensated Mr. Lane remain vague, according to sources familiar with the situation.
Lane referred to the payment as a “gift,” describing it as a gesture of atonement, but didn’t provide further specifics.
“I made a mistake, and I take responsibility for it,” Lane stated.
He also noted, “The gift should have been disclosed, and not doing so was a serious error in judgment. I regret this deeply; it cost me my job and my team, whom I truly care for. However, my feelings for Forbes and the wonderful people there haven’t changed.”
The approximately $6 million transaction was a significant breach of Forbes’ policies, which require employees to seek approval before engaging in outside business dealings and prohibit them from personally benefiting from the magazine’s activities.
Critics of Forbes confirmed Lane’s departure but chose not to comment on the payment. Shook Research also declined to provide remarks.
Founded 109 years ago by BC Forbes, the magazine has played a pivotal role in shaping the American cultural landscape. Over the years, it’s been known for featuring prominent business figures, fostering an image of success and ambition.
Recently, shortly before Christmas last year, Forbes made headlines by severing ties with numerous contributors, a move described by the editor-in-chief as necessary for improving the magazine’s “financial health.”
In recent times, the magazine has come under scrutiny for publishing lists that resemble clickbait, like “Top Next Generation Wealth Advisors in the State,” with many of these rankings being developed in collaboration with Shook Research.
Interestingly, Lane and Shook became friends during a 2013 charitable trip to Liberia organized by Forbes, and Lane continued to act as an “unofficial sounding board” for Shook without disclosing the sizable payment, which was mischaracterized as merely a gift from a friend.
Private equity firm PPC Enterprises closely monitored the payments after acquiring Shook Research, and new management cautioned against the types of transactions labeled as “gifts.”
Lane, who is 58, kept all his payments and was fired in July.
Shook Research has declined to comment, and attempts to contact Lane and Forbes for further information were made.
