Résumé Padding and Corporate Governance Failure at Samsonite

Abstract

This case reviews the June 2018 exit of Ramesh Tainwala as CEO of Samsonite, the global leader in the manufacture and sale of suitcases and luggage. It was not clear if Tainwala resigned for résumé padding (i.e. falsifying educational qualifications) or corporate governance issues raised by a short seller, Blue Orca Capital. Blue Orca accused Tainwala of falsifying education qualifications and other inappropriate related party transactions his family-owned companies had with Samsonite, which Tainwala denied. The short seller also accused Samsonite of inappropriate governance practices during the acquisition of the Tumi brand in 2016, which resulted in Samsonite’s overvaluation. Samsonite, nevertheless, showed confidence in the capabilities of Tainwala and accused Blue Orca of presenting a one-sided picture for its own gains. This case encourages students to discuss to what extent résumé padding is illegal versus being a questionable issue, and whether competent CEOs should be let go for such an issue. Students are also encouraged to discuss whether Blue Orca accused Samsonite for its own short-term gains. More broadly, the case prompts students to consider what an organization should do to pacify investors who are sensitive to any negative news associated with a company.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

You are not authorized to view Teaching Notes. Please contact your librarian for instructor access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles