Can a shareholder sue a CEO for incompetence?

Yes, a shareholder can sue a CEO for incompetence, typically through a derivative lawsuit. This type of lawsuit asserts that the CEO's actions or negligence harmed the company and, by extension, the shareholders. However, proving incompetence can be challenging, as it often involves demonstrating that the CEO breached their fiduciary duty or acted outside the bounds of reasonable business judgment. Shareholders usually need to show that the CEO's incompetence caused significant financial harm to the company.