William Agee was 38 and a rising corporate star in 1976 when the Bendix Corporation, a large auto parts maker, made him one of the youngest chief executives of a major American company.

Handsome and articulate, with an M.B.A. from Harvard, Mr. Agee personified a new, more fast-moving, less bureaucratic management style that was starting to take hold. He got rid of Bendix’s boardroom table as a stodgy artifact of the past, banned executive parking spaces and often dressed in a style now known as business casual.

Three years after he took the reins at Bendix, Time magazine featured him in a cover article with the headline “Faces of the Future.” He was personally appealing, and so was his message: Success at his company should be based on merit rather than seniority or tradition. He acted on that notion by recruiting and promoting young managers.

As it turned out, it was a recruiting decision — the hiring in spring 1979 of a bright, promising female employee named Mary Cunningham — and Mr. Agee’s subsequent handling of their relationship that largely defined his business career, touching off a national discussion about workplace behavior that reverberates today.