Red Cross Chief Ousted Over "Relationship"

The Red Cross said its board "acted quickly" after learning the 53-year-old Mr. Everson had had a "personal relationship with a subordinate employee." The Red Cross wouldn't confirm or deny the pregnancy or identify the employee.

In a brief statement released by the Red Cross, Mr. Everson, who is married, said he was resigning "for personal and family reasons," and said he deeply regrets "it is impossible for me to continue in a job so recently undertaken." He couldn't be reached for further comment.

While CEOs sometimes have relationships with subordinates, until recently it was rare for such behavior to lead to a public dismissal. In April, Starwood Hotels & Resorts Worldwide Inc.'s board ousted CEO Steven Heyer after receiving an anonymous letter accusing him of making sexual advances to female employees. An independent investigation reportedly uncovered emails substantiating the claims. Mr. Heyer has denied the allegations.

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In helping place Mr. Everson in the job, Heidrick & Struggles International Inc., a large executive-search firm, compiled a 33-page report based on interviews with references, according to a knowledgeable individual. Joie Gregor, the Heidrick recruiter who played a major role in the search, became President Bush's assistant for presidential personnel in September. Ms. Gregor declined yesterday to comment on Mr. Everson's ouster.