Red Cross Prez Forced Out for 'Relationship'

The president and CEO of the Red Cross was forced to resign yesterday for having an inappropriate "personal relationship with a subordinate employee" just six months after he was hired. "This is a huge punch in the stomach," said an organization official. Mark Everson was the Red Cross's third president in eight years.

The loss is a blow to the organization, which was criticized for its handling of Hurricane Katrina and has had a hard time keeping top executves. "This will affect fundraising, organizational morale and public trust in this organization, which is already dangerously low," said the head of a company that tracks nonprofits. (More American Red Cross stories.)