Complaint Review: Vistage Worldwide

Vistage is an organization that claims to help CEOs become better leaders and grow their businesses. The Vistage Business Model centers around 1) a monthly full day confidential peer group meeting; and 2) a monthly 2-hour individual coaching session where members can share confidential information with their Vistage Chair and Vistage Group members and get advice on business strategy, financials, etc.

Vistage Group sessions and Coaching sessions are led by a Vistage Chair, which Vistage describes as follows:

“A Vistage Chair is an executive mentor who guides top business leaders through their toughest turning points, so they can make great decisions that benefit their lives, companies and communities. Our Chairs are accomplished business leaders and mentors, hand-picked from a cross-section of industries. At the peak of achievement in their own careers, each realized how much they could contribute as a mentor. The guidance of a Vistage Chair creates a ripple effect felt from C-suite through company ranks, and into your community.” – from the Vistage web site.

My Vistage Chair used the confidential information I shared about business (financials, business strategy, etc.) to form a competing business.  He tried to hide this by forming the business under the name of his daughter since she is married and goes by her married last name.  He then poached my General Manager (who I was paying Vistage to coach into a better leader). 

I immediately informed Vistage and was told that Vistage Chairs are Independent Contractors and that Vistage takes no responsibility for the actions of Vistage Chairs.  The Vistage Chair was not even fired until Group Members began to quit and I had hired a lawyer to commence litigation.

We later found out that Vistage’s “hand-picked accomplished business leader” was basically broke and had nowhere near the assets to satisfy any potential judgement (my damages were appraised at around $6mm).

We sued Vistage (a copy of the complaint is can be found at www.memberlawsuit.com. The Lawsuit is currently pending.

A WARNING TO CURRENT AND PROSPECTIVE VISTAGE MEMBERS:

Those joining Vistage should know that Vistage takes the position that their Vistage Chairs are Independent Contractors.

As such, Vistage believes that it is not responsible for the actions of its Vistage Chair, including incidents where a Vistage Chair uses confidential information shared in the peer group meetings and coaching sessions for their personal benefit and your detriment.

Therefore, anyone that is currently in Vistage or looking to join Vistage should make their own independent investigation to understand the qualifications and financial strength of their Vistage Chairs.