I am an employee at a small nonprofit that produces resources for educators. Contrary to existing practice (and common practice, I believe), one of our internal authors (Author X) approached the CEO about securing royalties for the work she produces. (We don't offer royalties to internal authors, as they are compensated through payroll.) The CEO originally offered Author X a "carve out" clause that remits royalties for her work specifically; she later expanded that clause to all internal authors. This was contrary to the advice provided by the company's attorney. (I will not go into the details of why the attorney found this problematic, as I believe this is a prima facie case of negligence.) Despite the contrary arguments of the company's attorney, the Executive Vice President, and the Director of Human Resources, the CEO proceeded with her plan anyway, shifting the responsibility of drafting the agreement from the company's lawyer to Author X's lawyer.
To me, this whole thing stinks of a sweetheart deal with Author X. The agreement is still pending. Is there legal recourse to provide transparency on this issue, and would this action by the CEO — which impacts the organization negatively on several fronts — be considered a dereliction of duty?