The turmoil involving star quarterback Deshaun Watson offers a tabloid-worthy example of the challenges that leaders confront when they consider hiring highly competent (yet highly controversial) executive employees.

Mr. Watson is a widely accomplished quarterback in the National Football League. In college he led Clemson to the 2018 NCAA college football championship. As a member of the NFL’s Houston Texans, he has reached historic levels of personal achievement. When Mr. Watson and the Texans were unable to agree on contractual terms, he was made available for trade after the 2021 season. In a league where success is directly tied to quarterback play, Mr. Watson was set to become a highly prized commodity.

But there was one problem. Off the field, Mr. Watson confronted serious concerns associated with his personal conduct. Indeed, 24 different women alleged that he harassed or assaulted them during massage therapy sessions (allegations which Mr. Watson has denied). He was also the subject of a grand jury review based on these allegations.

Enter the Cleveland Browns, who have not enjoyed sustained success for many years and were seeking a top-rated quarterback to lead a young and increasingly talented team. They overwhelmed the Texans with an offer of multiple future #1 draft picks, and Mr. Watson with a $230 million contract. This essentially mortgaged the team’s near-term future on Mr. Watson’s talent and availability.

Yet despite Mr. Watson’s promise as a player, his...

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