RJ Shook, founder of Shook Research, has apologized for providing $6 million to Randall Lane, Forbes' former Chief Content Officer, who was dismissed last month after the payment came to light. Shook stated the payment was made "in recognition of the services and guidance" Lane offered, including assistance in selling Shook Research to a private-equity firm last year.
"My actions were taken with the best intentions, but ultimately the payment was a mistake," Shook told The New York Times. "I deeply regret that this has raised questions about the integrity and independence of Shook’s rankings."
Forbes fired Lane after learning of the payment, which Lane had described as a "gift" from a friend. A spokesperson for Forbes called the payment "unacceptable and is consistent with our policies and principles of trust, transparency and disclosure." The publication is exploring actions to hold Lane accountable and has engaged outside counsel for an independent review of the situation. Forbes has not yet found evidence that the integrity of its rankings has been compromised.
Shook Research and Forbes collaborate on various "best of" lists, particularly those ranking financial advisers. Shook indicated that Lane provided professional advice and helped facilitate the partnership between the two companies in 2016. Lane also assisted Shook with his efforts to sell the company to PPC Enterprises last year, a transaction that led to the discovery of the payment when the acquiring firm reviewed Shook Research emails.
Lane, who worked at Forbes for 15 years and was involved in overseeing lists such as "30 Under 30," previously stated, "I made a mistake, and I take responsibility for it."
In response to the controversy, Shook Research announced it would implement measures to "further strengthen and demonstrate the independence of its rankings." These steps include commissioning an independent governance review, establishing a new "independence charter," and enhancing transparency. The firm also noted that Lane was not involved in its rankings process and that the company began a re-brand in February.
The substantial payment has prompted scrutiny within the financial industry. Morgan Stanley Wealth Management reportedly informed its employees that it would suspend participation in Shook's industry rankings due to the payment scandal.