Wow. I don't know how David Carruthers will ultimately judged but it's hard not to have a measure of sympathy for the former CEO of troubled on-line sportsbook BetOnSports. Eight days after being arrested in America on charges of racketeering but yet to be convicted of anything or nothing, he is dimissed by the company.

"It's hard to imagine David Carruthers decked out in an orange jumpsuit and juxtaposed with a burly, tattooed cellmate. His company BetOnSports can't seem to deal with the idea either." - Parmy Olson, Forbes.com

Nicely put, and the company's justification for its decision only digs a deeper hole.

"Clearly, while he remains in the custody of the U.S. government, he is unable to perform his duties," BetOnSports said. "Further, the company has been unable to speak directly with Mr Carruthers."

Right. So if he had been kidnapped by terrorists while on his annual vacation, the ransom note would have been returned to sender with a P45 attached?

A source close to the company admitted that it "didn't look good" that it had severed all ties with Mr Carruthers, reports The Daily Telegraph. "It wasn't an easy thing to do. But David was the only link the company had left to [its controversial founder] Garry Kaplan. We have to move forward."

True, but at such speed? Rightly or wrongly, BetOnSports bears a marked resemblance to the proverbial can of worms right now and damage limitation will be at a premium but as a leading employment lawyer - quoted in another Telegraph report - points out, "There is the concept of innocent until proven guilty, which pertains to employment law as much as any other area of law. The fact that he has been sacked after being merely arrested rather than being convicted is very unusual."

In between the lectures on sales strategy and globalisation, I hope every MBA syllabus will one day find room for the salutary tale of David Carruthers. If there is one thing every starry-eyed young executive should know as he begins his climb up the corporate ladder, it is that any talk of a loyalty scheme applies purely to the customers.