re: Can a CEO be criminally prosecuted for 80% dividend drop due to egregious decision

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Of course, any director/officer of a company, public or private, can be sued CIVILLY for wrongful acts as a manager by other owners, not to mention vendors, trustees of employee benefit plans, etc. Criminal prosecution is not possible for bad decisions, unless they stole money, redirected payroll taxes or similar thef

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This board has inadvertently brought some things to light that may be very helpful. You may be correct that a civil action by those harmed may be the most viable solution. The Business Judgment Rule may provide shield but also presents obligations for the persons asserting it as a defense.

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Do you really think the government would put someone in jail for making a poor HR decision? You aren't breaking any SEC regulations by making a bad hire.

If it was such a bad idea, why didn't the board remove him before the damage was done?

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The faulty decision making went way beyond poor personnel decisions. It involved changing processes and procedures which had been very successful and praised by independent analysts. These were profoundly poor decisions by someone who was clearly out of his league.

The board was clueless and ineffective as it held limited meetings and was not consulted on those decisions. The effect of those decisions were not readily apparent, but will become magnified in the next few years. The prior successes have masked what has occurred in the short term.