how to deal with lying executives?

seems there has been a shakeup at my place of work. seems that our department head, an executive, has demoted our manager. seems that he had a replacement ready, the day of the demotion he announces a replacement who will start the next day. also seems that the executive has sent out an email stating that the demotion was at the request of the manager.

the truth is the manager told me that he was demoted by the executive by the executive’s choice. also the executive is looking to cut costs by his own statements.

now, if we add one plus one, we get the feeling that the executive has hired an axeman.

now, what would you do?

could you work for an executive who has lied to you?