> 2. Play it up as a huge problem that could threaten the company.
It absolutely was a HUGE problem. Even if he was set up, Conrad created a toxic culture that had to change.
Parker never seemed to understand that he could not flout laws & regulations like Uber; Uber has leverage because consumers love their product, and is able to put pressure on the incumbents and regulators; in contrast, NOBODY would stand up to defend Zenefits, and regulators will shut them down unless they clean up their act asap.
Edit: fixed typo (thanks @gingerrr)