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Why are so many successful founding CEOs software engineers?

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Re: Why are so many successful founding CEOs software engineers?

#21

Earlier quoted context omitted.

Regarding Alphabet, the article listed Sergey and Larry, arguably the leaders who oversaw google's meteoric rise. There is a note about Schmidt as well. Pretty much same comment for Apple, it remains to be seen if Tim Cook is another Jobs/Gates or if he is instead a Ballmer. Regarding Bezos, if you read the article you will find that you actually made the one of the major points in the article with your comment about…

Then they should revise the title to "Software engineers make the best founders." To your note on Bezos, the whole article makes no points about whether Bezos actually programmed or not, just that he thinks analytically and runs experiments. I mean, great for him! But this article isn't driven by any empirical data. Aside from its disingenuous claims about CEOs, it's a very emotionally written piece (doesn't feel lik…

To your note on Bezos, this section of the article is what really juxtaposed nicely for me with your comment on Bezos not coding:

>So, obviously, those that understand the super infrastructure that is software have a competitive advantage over those that don’t. But, as these leaders move up, they aren’t actually the ones writing the software. So, what differentiates their management practices such that those under them are better able to create and scale value? Other forces must be at play, it’s not as simple as the company’s products and services are software based. In the next sections, we will drill into the value stages for likely causes.

I mean, he clearly isn't writing the code, but he also clearly understands how to run a software org based on him telling wall street that his team is working on a quarter 3 years out.

Re: Why are so many successful founding CEOs software engineers?

#22

Intelligent people make the best CEOs. Software engineers are probably more intelligent, on average, than others. I think it might be better to look at IQ+EQ and see if there's a correlation there instead (although that data is probably not feasible to obtain).

Software Engineers are probably more intelligent than people from other engineering disciplines, or people in general? If other engineering disciplines, it seems a bit pretentious.

People in general, of course.

Re: Why are so many successful founding CEOs software engineers?

#23
post #4

Wow, talk about assuming correlation implies causation. I think the obvious lesson here is when society becomes reoriented around a new field (in this case software), people with experience in that field are going to do well.

So true! Around 1980, chemical and petroleum engineers made the best CEOs, because oil prices were high and energy companies had the highest stock-market valuations.

Around 1990 Japanese finance majors made the best CEOs, because the Japanese financial markets were near their peak and Japanese bank stocks were highly valued.

Re: Why are so many successful founding CEOs software engineers?

#24
The problem with using market cap for tech is that Wall Street and the financial industry in general factors in too much "hype" and imagined future earnings into their valuations. This should be obvious to anyone that sees headlines of X Company with unreliable revenue model now valued at $50 Billion.

If instead you look at industries which don't have as much of this future hype, they are much more competitive. Fashion, for instance. LVMH has a market cap of $283 billion and Bernard Arnault briefly surpassed Bezos as the richest man in the world in 2019.

Re: Why are so many successful founding CEOs software engineers?

#25
Hi, I'm the original author. It's late for me, but if you have questions or comment for me, I will get back to you in the morning.

The article has to do with this idea: "Software engineers deeply understand that you iterate your way to value through hundreds of failed attempts.”

I by no means think software engineers are smarter or more virtuous. What I do think is that the high rates of fail from writing code teaches them to discover value iterative -- hence the Agile movement. Learning is pivoting moment by moment, and planning one value attempt or value experiment at a time IMO. It is the nature of value that shaped this behavior IMO, not some superior virtue -- see https://iism.org/post/glossary-value-76

Re: Why are so many successful founding CEOs software engineers?

#26

Earlier quoted context omitted.

Then they should revise the title to "Software engineers make the best founders." To your note on Bezos, the whole article makes no points about whether Bezos actually programmed or not, just that he thinks analytically and runs experiments. I mean, great for him! But this article isn't driven by any empirical data. Aside from its disingenuous claims about CEOs, it's a very emotionally written piece (doesn't feel lik…

To your note on Bezos, this section of the article is what really juxtaposed nicely for me with your comment on Bezos not coding: >So, obviously, those that understand the super infrastructure that is software have a competitive advantage over those that don’t. But, as these leaders move up, they aren’t actually the ones writing the software. So, what differentiates their management practices such that those under th…

[deleted]

Re: Why are so many successful founding CEOs software engineers?

#27

The problem with using market cap for tech is that Wall Street and the financial industry in general factors in too much "hype" and imagined future earnings into their valuations. This should be obvious to anyone that sees headlines of X Company with unreliable revenue model now valued at $50 Billion. If instead you look at industries which don't have as much of this future hype, they are much more competitive. Fashi…

I agree. For example, look at companies by revenue, walmart is #1 and the no software engineer at the helm ever right?

Of course now take a look at this macro trends chart comparing walmart to amazon

https://www.macrotrends.net/stocks/stock-comparison?s=revenu...

Now tell me your best guess on when when Amazon will pass Walmart to take Fortune 1.

Re: Why are so many successful founding CEOs software engineers?

#28
post #17

Umm, if the product is software the domain expertise helps for that, but im not sure how companies like Shell or United Airlines benifit from a software CEO.

To be fair they listed the first 10 companies by market cap. It's not their fault neither Shell nor United Airlines made it to the top 10.

Yeah, another software engineering CEO has put a real damper on Shell's stock price - Elon Musk with his EV revolution

Re: Why are so many successful founding CEOs software engineers?

#29

Does anyone find this methodology lazy, if not disingenuous? - Google/Alphabet's current CEO is a materials engineer [0] - Apple's current CEO is an MBA with a degree in industrial engineering [1]. Jobs, the founding CEO, was also not a software engineer. - Amazon's CEO, Bezos, was a software engineer [2], but it's widely known that he didn't do programming work for Amazon. I don't think he would consider himself a "…

Furthermore, IMO there are a ton of questionable assumptions littered throughout the article.

The author goes into extreme detail describing exactly why software itself scales. This seems to have little to do with the CEO, though they keep jumping to comparisons between a software engineer's 'predictable' behavior, and the 'non-software' CEO's 'predictable' behavior.

Re: Why are so many successful founding CEOs software engineers?

#30
What this seems to show is that CEOs in a particular sector often have expertise in that sector. And that Tech is currently the most highly valued sector as measured by market capitalisation. To find evidence of Software Engineers being the best CEOs overall you'd really need to find examples of them running non-tech firms successfully or examples of non-Software Engineers running tech firms poorly.
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