Yes, in many places, absolutely. Bad decisions in your personal live suggest bad decisions in your professional life.
Now take the same point and apply it to every other crime, misdemeanor, and breaking of rules. Should companies really operate based on that? Or should we maybe draw a boundary around professional life and only consider the professional life?
Most CEOs are gone the moment any affair comes to light, nevermind one supposedly with a Chinese spy.
Does it work the other way as well, so you're forced to divorce your spouse if you make a bad business decision?
I am realizing that this is very foreign to some people and cultures. Among those who value honor, reputation, and trust the world is different.
But that's ironically a non issue now that's it's front page press...lol.
It's a bit like celebrities who release embarassing photos themselves, to bypass hackers leaking them. (To be clear, I don't think the photos should be out either way, your private matters should stay private, celebrity or not, and it's horrid to have it dragged out in public. But I do admire the ballsiness in just releasing it themselves. And in this post-modern era, perversely some people seem to benefit from the exposure)