Toxic leaders are often supported and defended by other leaders. At some point, pushing out a toxic leader is bad enough for the company image that the company would rather just hide the toxicity with NDAs. Childhood friends should never go into business together. Businesses built on a seed of nepotism are much more likely to fail. Imagine a 100-person company where the two founders are best friends since they were kids. If one of the founders repeatedly engages in inappropriate conduct, the other founder is much more likely to hide it.