Well, we were alone together, and he was obviously near tears - not just because he had been humiliated but because he was in fear of losing his job as well.
I still would not have wanted a hug. It's interesting that in that situation your instinct was to not give a hug. It sounds like you later felt somewhat guilty about acting (or not acting in this case) based on that instinct. Instincts exist for a reason, whatever that reason may be, and chances are they are correct. A few consoling words, which I'm sure you provided, would have been more than sufficient if I were in his shoes.