It's an imbalance of power and can open the door to liability.
Two professional adults who have worked their way up through business for decades. I am not sure whether imbalance of power applies in this case. I don't support the "subordinate" judgement in many cases. Still adults. Still in full mental capacity.
It does kind of show a lack of judgement and people might wonder how far that deficit stretches.
Remember that the President of the US is a convicted criminal :D
Ultimately it doesn't matter what we think. It's what the board of the company thinks if they have one. That or the shareholders. Sometimes the why doesn't always make sense.