Forbes Editor Gets $6M 'Gift' From Business Associate, Promptly Gifted the Boot
Forbes editor gets $6M 'gift' from a business partner, fails to disclose it, and gets a one-way ticket out the door - proving that even at a magazine about business, some transactions are off the books.
In a stunning display of editorial independence, Forbes has reportedly parted ways with its top editor after he accepted a cool $6 million from a business associate - a sum that, coincidentally, came from someone whose company does business with the magazine.
The New York Times reported this week that Randall Lane, the editor and chief content officer, received the payment from RJ Shook, whose firm Shook Research has partnered with Forbes since 2016 to publish rankings of wealth advisers. The payment followed Shook's sale of a majority stake in his company to a private equity firm a year prior.
An internal email dated 23 July, reviewed by the Associated Press, confirmed Lane's departure but offered no explanation. Lane, who had been with Forbes for nearly 16 years and served as top editor since 2017, apparently left without fanfare - or, as it turns out, without a severance package worth $6 million.
A Forbes employee, speaking on condition of anonymity due to the sensitivity of the matter, told the AP that staff learned of the alleged reason for the firing by reading the Times article. A subsequent company email said, "We cannot comment further," which is corporate speak for "we're hoping this blows over."
The Times quoted a source familiar with Lane's thinking as saying he viewed the payment as a thank-you for years of advice provided to Shook. Lane himself issued a statement: "I made a mistake, and I take responsibility for it. I should have disclosed the gift and failing to was a serious error in judgment. I deeply regret that, and I lost the job and team I love because of it." Lane and a Forbes spokesperson did not respond to AP requests for comment.
Why Shook paid Lane remains unclear, but the two companies were clearly chummy - Shook Research's website lists 12 rankings of wealth advisers and management teams in partnership with Forbes. Meanwhile, Forbes's own editorial values statement prohibits staff from "accepting compensation, privileges or favors of any kind from people, companies or groups featured in their coverage." Apparently, that rule is more of a suggestion.
The scandal arrives at a time when public trust in media is already in the tank: a Pew Research Center analysis from February found that 57% of Americans have low confidence in journalists to act in the public's interest. This story is unlikely to boost those numbers.
Forbes, founded in 1917, has long been a chronicler of corporate America, putting icons like Steve Jobs and Warren Buffett on its cover. Now it's making headlines for a different kind of business story - one that might be better suited for a different section.
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