Suneet Wadhwa, ex Ripple Head of Investments, joins Board of Advisors
David Mansfield, ex VinFast CFO, has joined as group CFO
Keith Loose, ex Block.one blockchain and tech infrastructure leader, has joined as group CTO
VivoPower is pleased to announce key executive leadership appointments, namely David Mansfield as Chief Financial Officer and Keith Loose as Chief Technology Officer. In addition, Suneet Wadhwa, former Head of Investments at Ripple, has joined the Board of Advisors.
David Mansfield brings over 25 years of senior financial leadership experience across global capital markets, financial technology, and sustainable enterprises. He most recently served as Chief Financial Officer (CFO) of VinFast, a global electric vehicle manufacturer where he was a key member of the executive team that led it to a successful US$23 billion initial public offering (IPO) on NASDAQ. Prior to then, Mr. Mansfield held senior roles including as managing director at J.P. Morgan, Credit Suisse, and Goldman Sachs, leading complex capital markets, trading, and structuring functions. He also brings entrepreneurial experience from founding and advising fintech ventures across Asia. Mr. Mansfield will lead VivoPower’s financial strategy, capital allocation, statutory reporting and investor engagement functions.
Keith Loose joins as Chief Technology Officer with over 20 years of experience at the intersection of enterprise technology, blockchain, and infrastructure architecture. He has held senior technology leadership positions at companies including Block Inc (CashApp Financial Platforms), Block.one, OSL Group, CLSA, and J.P. Morgan, with a strong focus on security, performance engineering, and financial platform development. At VivoPower, Mr. Loose will oversee the Company’s digital transformation, cybersecurity, and the buildout of its digital asset treasury infrastructure.
Suneet Wadhwa is a serial tech entrepreneur and executive with a distinguished 30-year career in Silicon Valley. He brings specific experience in the digital asset and decentralized finance industry and his role at VivoPower will be to build out the company’s DeFi strategy to generate yield on its XRP treasury and to spearhead DeFi investments in the XRPL ecosystem. At Ripple, Mr. Wadhwa led a US$500 million institutional investment portfolio, delivering a 4.2x MOIC and 77% IRR across 38 global investments. His track record includes successful exits such as BRD (acquired by Coinbase) and strategic positions in Forte, Flare, Kava, BitPay, and Mintable. His expertise will directly support VivoPower’s XRP treasury strategy and real-world integration across the XRP Ledger (XRPL). Prior to his role at Ripple, Mr. Wadhwa co-founded Snapfish, which was acquired by HP for US$300 million and was an early employee at Home Network where he was integral to the company’s growth through to their US$35 billion IPO.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “We are delighted to welcome David, Keith and Suneet to the VivoPower team. Each of them is highly experienced and credentialed in their respective fields, bringing exceptional track records in capital markets, digital asset, decentralized finance and blockchain technology to VivoPower. We have already been working closely with each of them as we execute on a number of significant strategic initiatives across VivoPower.”
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
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Marks first major execution of VivoPower's new corporate strategy and significant validation of the XRP ecosystem's utility for institutional treasury management
VivoPower is building a virtuous cycle—generating yield and using it to systematically increase its core XRP position, creating a perpetually compounding engine for shareholder value
VivoPower’s strategic transformation to an XRP-centric treasury is supported by a consortium of global shareholders, including His Royal Highness Prince Abdulaziz bin Turki bin Talal Al Saud of Saudi Arabia, reflecting a deep conviction in the long-term institutional role of the XRP asset
Flare Network is a $1.9bn coin market cap enterprise backed by Ripple Labs
VivoPower, a publicly traded company focused on an XRP-centric treasury strategy, today announced the launch of a definitive partnership with Flare to generate yield on its digital assets. The agreement initiates the deployment of VivoPower’s XRP holdings through a scalable framework, beginning with a benchmarked initial phase of US$100 million. This marks the first major execution of VivoPower's new corporate strategy and a significant validation of the XRP ecosystem's utility for institutional treasury management.
This definitive agreement marks a pivotal moment for institutional adoption within the rapidly expanding Flare ecosystem. The network has already demonstrated significant traction in the retail sector through partners like Uphold, a global digital asset platform serving over 10 million users with approximately US$7 billion in assets under reserve. VivoPower’s commitment now represents the crucial institutional validation of the ecosystem, establishing the first major treasury management use case on the network.
This partnership delivers the first institutional-scale validation of Flare’s FAssets system, establishing it as the essential programmable utility layer for the XRP ecosystem. The strategy is designed to be regenerative: VivoPower will generate yield via protocols on Flare, such as Firelight, and reinvest that income directly back into its core XRP holdings, creating a perpetually compounding and capital-efficient treasury.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive. This landmark partnership with Flare does precisely that—it puts our treasury to work. We are building a virtuous cycle: generating yield and using it to systematically increase our core XRP position, creating a perpetually compounding engine for shareholder value. Adopting Ripple’s RLUSD is a cornerstone of this strategy, providing the stability and compliance this next-generation treasury demands."
Hugo Philion, Co-Founder of Flare, said: “While the XRP Ledger (XRPL) is the proven standard for settlement, a new layer of utility is required to unlock the full potential of digital assets. We engineered Flare as the blockchain for data to be that layer, with enshrined protocols to securely access information from other chains and the real world.
“Our FAssets system is a direct application of that core technology. It is more than just a bridge; it’s a gateway that allows institutions to bring assets like XRP into programmable DeFi environments to generate yield, all while retaining their fundamental security. What VivoPower is pioneering today is an open invitation for all institutions to build on this new utility layer.”
XRPFi: The Standard for Institutional-Grade Digital Finance
This partnership pioneers the XRPFi standard—a necessary evolution of DeFi engineered specifically for the demands of institutional treasury management. This model is defined by its focus on three core principles: sustainably generated yield, unwavering regulatory clarity, and asset-backed security.
Such a standard can only be built upon the unique strengths of the XRP asset and the proven history of its underlying ledger. For over a decade, the XRPL, launched by Ripple in 2012, has been tested and trusted as the backbone for enterprise-grade finance, making it the only logical foundation for the next generation of tokenized, real-world assets.
VivoPower’s selection of XRP as its core reserve asset was a strategic decision, predicated on its unique standing in the market. Among digital assets, XRP offers a level of regulatory clarity and proven efficiency that is essential for a public company’s treasury. This established track record, combined with its architecture’s suitability for tokenized real-world assets (RWAs), makes it the clear choice for a forward-looking financial strategy. To cement this ecosystem-first approach, VivoPower will hold Ripple’s forthcoming RLUSD stablecoin as its primary cash-equivalent reserve, ensuring stability and compliance across its entire digital treasury.
Flare: The Institutional-Grade Bridge for XRP Utility
VivoPower’s selection of Flare was the result of a rigorous evaluation of its technology, which serves as a secure, institutional-grade bridge for XRP to the DeFi ecosystem. Central to this is Flare’s FAssets system, a non-custodial protocol that enables XRP to be used in smart contract applications while preserving its native security model.
Flare’s broader ecosystem demonstrates significant readiness for institutional activity. Protocols essential to this strategy, such as the yield-generating Firelight protocol, are in place. The network’s ability to attract substantial liquidity has been recently demonstrated by the launch of the USDT0 stablecoin, which drove over US$90 million in new Total Value Locked (TVL). This robust infrastructure validates Flare’s role not as a replacement for the XRPL but as a complementary, programmable utility layer built to extend XRP’s reach into compliant, yield-generating finance.
Backed by Global Financial Leaders and XRP Ecosystem Veterans
VivoPower’s strategic transformation to an XRP-centric treasury is supported by a consortium of global shareholders, including His Royal Highness Prince Abdulaziz bin Turki bin Talal Al Saud of Saudi Arabia. This backing reflects a deep conviction in the long-term institutional role of the XRP asset.
Operationally, the strategy is guided by former senior leadership from Ripple in Asia, providing unparalleled ecosystem expertise. VivoPower will scale its engagement with Flare through targeted institutional partnerships and ecosystem activation programs.
This convergence of visionary strategy, significant financial backing, and deep industry expertise marks a new phase of maturity for the XRP ecosystem—one defined by product-market fit, compliant yield, and sustainable infrastructure.
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
About Flare
Flare is a next-generation Layer 1 blockchain designed to connect decentralized systems with real-world utility through secure, data-rich interoperability. With enshrined data protocols, trust-minimized interoperability, and support for complex computation, Flare is the only EVM-compatible Layer 1 optimized for chain-agnostic applications. Its innovative FAssets system brings non-smart contract assets like XRP into DeFi, enabling institutional-grade staking and yield generation. Following strong adoption on its Songbird canary network and with mainnet launch approaching, Flare is positioned as the foundational utility layer for institutional blockchain adoption worldwide.
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Shareholders as at the ex-dividend date of 12 June 2025 will be eligible to receive any potential special dividend distributions relating to Tembo transactions
Corresponding record date will be 13 June 2025
VivoPower today announced that it has set an ex-dividend date of 12 June 2025 pertaining to any potential future dividend distributions regarding transactions involving Tembo e LV B.V. (Tembo).
Shareholders who hold VivoPower shares as of the close of business on 12 June 2025 will be entitled to receive any potential future special dividend distributions relating to Tembo. Shareholders purchasing VivoPower shares on or after the ex-dividend date will not be eligible for the distribution.
Any potential future special dividend distributions relating to the Caret business unit will be advised separately.
Further details regarding potential special dividend distributions, including the amount and ratio will be provided when appropriate. There is no guarantee that any special dividend distributions will be made.
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
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Energi Holdings proposes to acquire 51% of Tembo based on a total enterprise value of US$200 million
Parties now agree to work towards negotiating binding transaction documents with a view to early closing
Board concurrently evaluating special dividends and/or capital return to shareholders
VivoPower today announced that Energi Holdings Limited (Energi) has advised the Company of the completion of the second phase of due diligence in connection with the previously disclosed Tembo proportional acquisition at a total enterprise value of US$200 million.
Energi, headquartered in Abu Dhabi, is a global energy solutions company with US$1 billion in annual revenues and operations spanning the Middle East, Africa, South Asia, Europe, and Southeast Asia (Energi).
Consequently, both parties now agree to work towards negotiating a final transaction structure and binding transaction documents with a view to an early closing. In addition, the parties have agreed that completion of the Tembo merger with Cactus Acquisition Corp. 1 Ltd (CCTSF) with the intention to complete a separate public listing of Tembo is in the best interests of both parties.
In accordance with previous announcements, the VivoPower board will concurrently evaluate the optimal use of investment proceeds, which may include the return of capital or the payment of a special dividend to shareholders.
Disclaimer
There can be no assurance that these discussions will lead to a definitive agreement or that any potential transaction will be consummated. The Company reserves the right to terminate discussions at any time and for any reason, without liability. Consequently, there is no assurance that any return of capital or special dividends will be forthcoming. Furthermore, the record date is subject to change.
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
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VivoPower to leverage BitGo’s best-in-class OTC trading desk and custody platform to build digital asset treasury strategy
BitGo, the leading infrastructure provider of digital asset solutions, and VivoPower, a publicly traded company that recently announced transition to an XRP focused treasury and decentralized finance solutions company, today announced a strategic partnership. VivoPower, having successfully raised US$121 million, will leverage BitGo as an exclusive over-the-counter (OTC) trading desk to acquire XRP for its initial US$100 million acquisition of XRP tokens.
VivoPower will exclusively leverage BitGo for both the trading of its XRP holdings through BitGo’s 24/7/365 OTC trading desk and holding of its assets through BitGo’s best-in-class custody platform. As a result, VivoPower is expected to benefit from BitGo’s liquidity, robust execution capabilities, and secure cold storage infrastructure.
Kevin Chin, Executive Chairman and CEO of VivoPower, said: “VivoPower is committed to driving value for our shareholders by building out a leading digital asset treasury strategy—a mission we plan to accomplish through partnerships with best-in-class digital asset leaders like BitGo. BitGo’s track record, combined with its institutional-grade, secure-by-design custodial and trading infrastructure, makes them the clear choice to execute and safeguard our treasury allocation.”
Mike Belshe, CEO of BitGo, said: “VivoPower’s commitment to digital assets is a testament to the institutional momentum building around our ecosystem. We are proud to provide the comprehensive platform that companies like VivoPower need to enter the digital asset space with confidence—from seamless execution to industry-leading custody.”
The partnership underscores BitGo’s growing position not only as a trusted custodian, but also as a premier trading partner for institutions executing large block trades. BitGo’s OTC desk enables efficient access to deep, global liquidity pools and discreet execution of high-volume trades, all within a secure and compliant environment.
VivoPower has filed a registration statement (including a prospectus) with the U.S. Securities and Exchange Commission (the “SEC”) for a public offering of its ordinary shares. Before you invest in the public offering, you should read the prospectus in that registration statement and other documents VivoPower has filed with the SEC for more complete information about the issuer and the public offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, VivoPower or Chardan, the placement agent for the public offering, will arrange to send you the prospectus if you request it by emailing [email protected] or [email protected].
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
About BitGo
BitGo is the leading infrastructure provider of digital asset solutions, delivering custody, wallets, staking, trading, financing, and settlement services from regulated cold storage. Since our founding in 2013, we have focused on enabling our clients to securely navigate the digital asset space. With a large global presence through multiple regulated entities, BitGo serves thousands of institutions, including many of the industry’s top brands, exchanges, and platforms, as well as millions of retail investors worldwide. As the operational backbone of the digital economy, BitGo handles a significant portion of Bitcoin network transactions and is the largest independent digital asset custodian, and staking provider, in the world. For more information, visit www.bitgo.com.
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Revised enterprise value of US$200 million for 51% of Tembo e-LV is an increase versus the US$180 million enterprise value offered for 80% of the non affiliated shares of VivoPower
Energi will support Tembo’s business combination with Cactus Acquisition Corp 1 Limited at an equity valuation of US$838 million
VivoPower today announced it has received a revised non-binding proposal from Energi Holdings Limited (Energi) for a direct strategic acquisition of VivoPower’s subsidiary, Tembo e-LV B.V. (Tembo). This follows the announcement by VivoPower on 28 May 2025 in relation to its strategic capital raising and digital asset treasury strategy.
The revised proposal from Energi outlines an intention to acquire a 51% controlling stake in Tembo. This proposed acquisition is based on a total enterprise valuation for 100% of Tembo of US$200 million, with the equity purchase price for the 51% stake to be derived from this enterprise valuation, adjusted for Tembo’s net debt and other customary adjustments at the time of closing.
Energi has expressed its continued support for Tembo’s planned business combination with Cactus Acquisition Corp. 1 Limited (“CCTS”). Energi has indicated its preparedness to work constructively with VivoPower and Tembo to structure its investment to facilitate the successful completion of the business combination, envisioning rolling its 51% stake into the combined entity. VivoPower would continue to retain a significant shareholding in Tembo should the business combination be successfully consummated.
The Company is committed to optimizing its capital structure and delivering value to its shareholders. In line with this commitment, net proceeds received from strategic transactions, such as the potential partial sale of its interest in Tembo as contemplated by the Energi proposal, would be prioritized for uses including the retirement of debt. The VivoPower board of directors will continuously evaluate the best use of capital, including the potential return of any surplus funds thereafter to shareholders.
The revised proposal from Energi is non-binding and indicative. VivoPower is evaluating the proposal. It is subject to several conditions, including the satisfactory completion of due diligence by Energi, the negotiation and execution of mutually acceptable definitive legal documentation, approval from the VivoPower board of directors and any required VivoPower shareholder approvals.
There can be no assurance that any definitive agreement will be reached with Energi or that the proposed transaction will be consummated on the terms described, or at all. VivoPower does not intend to make any further announcements regarding this proposal unless and until it determines that further disclosure is appropriate or required.
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
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Capital raise led by His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud of Saudi Arabia
Adam Traidman, former Ripple board member and CEO of SBI Ripple Asia, has also invested and joined as Chairman of the Board of Advisors
VivoPower believed to be first public company in the world executing on an XRP-focused digital asset treasury and decentralized finance strategy
Funds raised will be used to buy and hold XRP, building out the treasury and DeFi team, as well as for debt reduction and working capital
Energi takeover due diligence continuing with a focus on Tembo
VivoPower is pleased to announce that it has reached agreement with certain investors in relation to a private capital raise priced at US$6.05 per share, above the last market closing price of US$6.04 under Nasdaq rules. In connection therewith, the Company has entered into securities purchase agreements (Subscription Agreement) with the investors for the purchase and sale of an aggregate of 20,000,000 ordinary shares of the Company at a price of US$6.05 per share for aggregate gross proceeds of approximately US$121 million, before deducting placement agent fees and other offering expenses.
The private offering was spearheaded by His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding Company in Saudi Arabia with participation from a number of other prominent digital asset industry investors, institutions, as well as the investment office of VivoPower Chairman, Kevin Chin.
VivoPower is believed to be the first publicly listed company in the world to launch an XRP-focused digital asset treasury strategy that also encompasses the contribution to building out the XRPL ecosystem for real-world decentralized finance blockchain solutions. XRP is expected to be one of five digital assets that will be accumulated by the US Government as part of President Donald Trump’s recently announced Strategic Bitcoin Reserve and United States Digital Asset Stockpile.
His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud, said: “We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing a number of listed vehicles seeking to embrace a digital asset treasury model, we selected VivoPower given its strategic focus on XRP and its objective to contribute to building out of the XRPL ecosystem. Furthermore, we are committed to the long-term partnership objective that we share with Kevin Chin and his team. We are honored to be leading this capital raising for a company that will be the first in the world executing on an XRP-focused treasury strategy. Having met with President Trump and his leadership group during their recent visit to Saudi Arabia, we believe the timing is appropriate for digital assets and blockchain technology to be rolled out in the Kingdom and we are delighted to be assisting VivoPower in this regard.”
Executive Chairman of VivoPower, Kevin Chin, said: “We are incredibly privileged to have His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud of Saudi Arabia leading this transformational capital raising and are also pleased to welcome other digital asset industry investors joining in this round. As long-term holder of XRP myself, we all share a common vision and objectives with regards to how a publicly listed XRP-focused treasury company can be scaled for the benefit of the XRP community and VivoPower stakeholders alike. Furthermore, I am personally enthusiastic about the multiple real-world use cases that help resolve issues such as international wire payment friction, which we have experienced first-hand given the markets we operate in. We can see a number of potentials XRP blockchain solutions for our Tembo business and Caret Digital businesses. By way of update, we are now accelerating to complete the spin-offs of both Tembo and Caret Digital and will continue to engage with Energi to discuss next steps in relation to their takeover proposal.”
As part of the strategic move, Adam Traidman, former Ripple board member and co-founder of multiple blockchain ventures, is investing in the offering and joined VivoPower’s Board of Advisors as Chairman. Traidman said: “Having been involved with Ripple since its formative years, I’ve seen the strength and adaptability of the XRPL ecosystem. VivoPower’s initiative to become the first publicly listed company with an XRP-centric treasury strategy is a forward-thinking move that reflects growing institutional conviction in real-world blockchain applications. I look forward to contributing to the Company’s efforts in scaling its XRP presence.”
The closing of the offering is subject to the satisfaction of certain closing conditions, including receiving approval from VivoPower’s shareholders at a shareholder meeting, to be called by the Company, and the satisfaction of other customary closing conditions. The shareholder meeting is expected to take place on or around June 18, 2025. In addition, the consummation of the transactions contemplated hereby is conditioned upon the sale and purchase agreements (Subscription Agreements) not having been validly terminated in accordance with its terms, which include but are not limited to material adverse change for the Company including in relation to its securities, delisting or suspension of the Company’s shares and non-performance of obligations by either the Company or the investors.
The Company intends to use the majority of the funds raised to accumulate XRP and establish its XRP-focused treasury operations ,as well as to contribute and invest in the XRPL DeFi ecosystem. Funds raised will also be used to reduce debt and for general corporate purposes. The Company’s evolution into an XRP-focused digital asset treasury company reinforces the Company’s objective of spinning out its current operating subsidiaries, being Tembo (electric vehicle company) and Caret Digital (power-to-x digital asset mining company). Both are targeted to close before the end of Q3, CY2025. In addition, the Company will continue to engage with Energi Holdings Limited (“Energi”) on its takeover proposal, but with a view to redirecting the focus of the takeover towards Tembo.
Chardan acted as the sole placement agent in connection with the offering.
The private offering was made only to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act of 1933, as amended (the “Securities Act”). Any securities described in this press release have not been registered under the Securities Act and may not be offered or sold in the United States or to U.S. persons (as defined in Regulation S under the Securities Act) except in transactions registered under the Securities Act or exempt from, or not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws.
This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other jurisdiction.
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
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Phase I due diligence successfully completed on schedule; Phase II of due diligence to be completed by 2 June 2025
VivoPower today announced that Energi Holdings Limited (Energi) has advised the Company of the successful completion of the first phase of due diligence in connection with the previously disclosed non-binding proportional takeover at an enterprise value of US$180 million.
Energi, headquartered in Abu Dhabi, is a global energy solutions company with US$1 billion in annual revenues and operations spanning the Middle East, Africa, South Asia, Europe, and Southeast Asia (www.energi.ae).
The first phase of due diligence, which involved commercial, financial, and operational reviews, was completed successfully on schedule.
Consequently, both parties have agreed to an accelerated second phase of due diligence, which will include a more in-depth review of regulatory, legal, and technical matters. This phase is expected to conclude by 2 June 2025, with both parties continuing to work constructively toward the goal of a binding agreement.
To read the full press release, and to keep up with all of VivoPower’s releases, visit the company's Press Releases page.
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Toxic business leadership can quietly rot the core of an organisation, leading to high turnover, low morale, and plummeting performance. While many companies recognise the dangers of toxic leadership, few have a truly sustainable strategy to fix it.
This is where Human Resources (HR) plays a critical, transformative role.
The best and most sustainable way for HR to tackle issues with a toxic leader isn't to simply react when things go wrong—it's to implement a comprehensive, multi-layered approach grounded in transparency, accountability, employee well-being, and long-term cultural transformation.
Let’s explore how HR managers can build and execute a winning strategy to deal with toxic leadership—for the health of both employees and the business itself.
The first step in dealing with toxic leadership is making sure employees feel safe enough to talk about it. Too often, toxic leaders thrive because employees are too afraid to speak up. Fear of retaliation, career sabotage, or simply being ignored can silence those most affected.
HR must proactively create multiple, accessible, and confidential avenues for employees to report concerns.
Some of the most effective ways include:
However, it doesn’t stop there. Regular town halls, focus groups, and feedback sessions give employees a voice and create a culture where open dialogue becomes normalised, not feared.
When employees see that their feedback leads to real action, trust begins to build—and toxic behaviors can be surfaced early, before they cause widespread damage.
Without hard data, leadership issues often remain a matter of opinion rather than fact. To create a strong case for addressing toxic leadership, HR must rely on robust, ongoing monitoring systems. Some best practices include:
If toxic leadership is suspected, HR should also conduct deeper qualitative research, such as:
By combining data with personal testimony, HR can build an undeniable case that highlights the leadership issues at play—and move forward with evidence-based solutions.
Toxic leadership can’t be changed unless leaders are held to clear, enforceable standards. Accountability begins with transparent policies that outline:
It’s not enough to have vague guidelines buried in the employee handbook. Leadership expectations must be visible, regularly discussed, and formally incorporated into performance evaluations.
This means leaders should be assessed not only on what they achieve, but on how they achieve it. Metrics might include:
When leaders know that poor behavior will directly impact their bonuses, promotions—or even their jobs—organisations send a clear message: culture and people matter.
And importantly, if toxic behavior is repeated or severe, zero-tolerance policies must be enforced, even if that means removing high-performing but toxic leaders from their roles. Protecting the organisation’s health is always more important than protecting an individual’s position.
Not every toxic leader is malicious—sometimes, they simply lack the skills to lead effectively. That's why targeted leadership development is critical.
Instead of assuming that toxic leaders are irredeemable, HR can invest in helping them grow through:
This sends a powerful message across the organisation: Everyone, including leadership, is expected to learn, grow, and evolve.
In many cases, leaders who once exhibited toxic behaviors can, with the right support, transform into empathetic, effective managers.
Where change is possible, HR must facilitate it.
Toxic leadership almost always breeds conflict—but conflict itself isn’t always bad. Handled well, conflict can be an opportunity for healing, transparency, and cultural change.
HR must position itself as an impartial mediator between leaders and their teams. This involves:
Psychological safety—the belief that one can speak up without fear of punishment or humiliation—must be the foundation of these efforts.
When conflict resolution becomes part of the company DNA, organisations become stronger, more adaptable, and more united—even after facing leadership challenges.
Addressing toxic leadership isn’t just about fixing the bad—it’s about celebrating and reinforcing the good.
To create a workplace where toxic leadership cannot thrive, HR must actively promote positive leadership behaviors through:
Culture is built through repetition and reinforcement. When organisations consistently lift up the leaders and employees who embody their best values, those values become the new normal.
At the same time, HR must regularly review and revise company policies to ensure they reflect and reinforce the desired culture—not just on paper, but in daily practice.
There’s no "one-and-done" solution for toxic leadership. Cultural transformation is a living, breathing process that requires:
Staying vigilant is key. New challenges, external pressures, or leadership changes can always reintroduce toxicity into the system. By keeping a close watch and committing to ongoing improvement, HR ensures that toxic leadership remains the exception—not the rule.
Ultimately, sustained commitment wins the day. Not perfection, not quick fixes—just relentless, thoughtful action over time.
Toxic leadership is a serious threat—but it is not unbeatable.
HR managers are uniquely positioned to drive change, protect employees, and shape a healthier future for their organisations. By combining open communication, robust monitoring, leadership accountability, targeted development, and an unwavering commitment to positive culture, HR can not only address toxic leaders but prevent them from ever gaining a foothold again.
The reward for this hard work is immense:
When HR leads the way, everybody wins. A workplace free from toxic leadership isn’t just a dream. With the right strategy, it’s a reality well within reach.
For more news and insights, stay tuned to the Arowana website.
In today’s fast-paced business world, leadership isn't just about calling the shots — it's about inspiring, guiding, and building an environment where people can thrive. Yet, not all leaders rise to this ideal.
Toxic leadership — marked by manipulation, favoritism, poor communication, and lack of empathy — is a silent destroyer within organisations. It doesn't just bruise egos or create minor setbacks; it systematically erodes employee morale, wrecks team dynamics, and cripples overall company performance.
In this edition of Arowana Insights, we’ll take a deep dive into how toxic leadership affects employee morale, the warning signs organisations need to watch for, and why addressing these issues is critical for long-term success.
Toxic leadership refers to a style of management where leaders prioritise their own interests, often at the expense of their team’s well-being and the organisation’s mission. Instead of empowering employees, these leaders instill fear, insecurity, and distrust.
Common traits of toxic leaders include:
While toxic leadership can sometimes deliver short-term results, its long-term effects are devastating, leading to broken teams, burned-out employees, and massive hidden costs.
Trust is the bedrock of any healthy organisation. When leadership becomes toxic, trust is the first casualty. Employees subjected to manipulation, inconsistency, or favoritism begin to doubt their leaders — and eventually, the organisation itself.
According to a 2024 survey by Gallup, trust in leadership is directly correlated with employee engagement. Without trust, morale plummets. Workers become guarded, communication suffers, and innovation grinds to a halt.
In a toxic environment, employees often find themselves second-guessing not only their leaders but also their coworkers. Paranoia spreads, and collaboration evaporates. It's not just uncomfortable — it's organisationally dangerous.
Key takeaway: When employees can't trust leadership, morale doesn't just dip — it falls off a cliff.
Toxic leadership doesn't just stay within office walls — it takes a heavy toll on the mental health of employees. Chronic stress becomes the norm, with anxiety levels steadily rising as employees navigate unpredictable and often hostile work environments.
Research from the American Psychological Association (APA) shows that workplace stress is a leading cause of anxiety disorders, emotional exhaustion, and eventual burnout. Under toxic leadership, workers often feel trapped: powerless to change their situation but fearful of speaking up.
Burnout isn't just feeling "tired." It’s a complete emotional and psychological shutdown. Signs of burnout include:
Organisations led by toxic managers often see burnout rates skyrocket, especially among their most dedicated and high-performing employees — a tragic irony.
Key takeaway: Toxic leadership transforms the workplace from a place of growth into a source of chronic emotional distress.
Job satisfaction and employee engagement go hand-in-hand with effective, supportive leadership. In toxic environments, both steadily deteriorate. Employees begin to feel undervalued, unheard, and ultimately invisible.
When leadership consistently overlooks input, dismisses concerns, or takes credit for employee achievements, team members lose their motivation to invest emotionally in their work. As engagement drops, so does overall organisational performance.
According to a 2023 LinkedIn Workforce Report, companies with highly engaged employees outperform their competitors by 21% in profitability. Conversely, disengagement — often triggered by poor leadership — drags down productivity, customer satisfaction, and profit margins.
Key takeaway: Toxic leadership doesn't just sap satisfaction; it drains the energy and enthusiasm that fuel company success.
One of the clearest signs of toxic leadership is increased turnover. Talented employees — the very people organisations can least afford to lose — often choose to leave toxic environments rather than endure ongoing emotional harm.
A study by the Society for Human Resource Management (SHRM) found that toxic workplace cultures cost U.S. companies over $223 billion between 2015 and 2025, primarily due to employee turnover.
High turnover isn't just a numbers game. It creates significant operational challenges:
Absenteeism is another telltale symptom. Employees may start calling in sick more frequently, using mental health days to escape the toxic atmosphere.
Key takeaway: If your best people are leaving or frequently absent, toxic leadership could be to blame — and the financial cost is staggering.
Leadership should act as a catalyst for high performance, but in toxic environments, it becomes a bottleneck. Demotivated, stressed, and disengaged employees are far less likely to perform at their best.
Instead of bringing new ideas, solving problems creatively, or going the extra mile, employees under toxic leadership often do only what’s required — no more, no less. This phenomenon, known as "quiet quitting," is becoming alarmingly common in toxic workplaces.
Productivity suffers in multiple ways:
When morale hits rock bottom, organisations often find themselves struggling to compete — not because they lack talent, but because they failed to nurture it.
Key takeaway: Toxic leadership doesn't just dim individual performance; it darkens the entire organisation's future.
Teams thrive on trust, mutual respect, and open communication. Toxic leaders, however, often sow division instead. Whether through overt favoritism, scapegoating, or pitting employees against each other, these leaders create fractured, distrustful teams.
In such environments, communication becomes guarded or entirely shuts down. Employees fear retaliation for honest feedback or dissenting opinions. Meetings become performances rather than platforms for real collaboration.
Ultimately, a breakdown in communication leads to:
According to Forbes, highly cohesive teams are 50% more productive and 30% more innovative than fragmented ones. Toxic leadership not only undermines cohesion — it actively destroys it.
Key takeaway: Toxic leaders don’t just damage individual relationships — they dismantle the entire social fabric of the workplace.
The impacts of toxic leadership are not confined to working hours. Stress, anxiety, and dissatisfaction often spill over into employees' personal lives, affecting their health, relationships, and overall well-being.
Employees under toxic leadership may experience:
This spillover effect creates a vicious cycle. As personal lives become strained, employees’ ability to focus and perform at work deteriorates further, perpetuating the negative impacts.
Beyond the individual level, toxic leadership also damages an organisation’s brand reputation. Glassdoor reviews, employee testimonials, and word-of-mouth all suffer when people feel mistreated.
Key takeaway: Toxic leadership doesn't clock out at 5 PM — it continues to hurt employees long after they leave the office.
The longer an organisation tolerates toxic leadership, the deeper the damage becomes. Companies that fail to act risk not only losing their best employees but also facing long-term reputational and financial consequences.
Key steps organisations can take include:
Ultimately, companies that foster healthy, supportive leadership styles reap massive benefits: higher engagement, stronger performance, lower turnover, and a reputation as an employer of choice.
At its core, leadership is not just about meeting KPIs or maximising quarterly profits. It’s about creating environments where people feel safe, valued, and inspired to do their best work.
Toxic leadership is a hidden epidemic in many organisations, silently eroding morale, trust, and performance. Its impacts stretch far beyond the workplace, affecting the mental health and well-being of employees — and eventually the bottom line.
Companies that recognise, confront, and correct toxic leadership will not only save their cultures — they’ll position themselves for sustainable success in a world where talent and innovation are the ultimate competitive advantages.
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