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Many companies aren’t prepared to replace underperforming CEOs

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Re: Many companies aren’t prepared to replace underperforming CEOs

#11

Theres no accountability above a certain level. In a stable business (am excluding new innovations), proving or disproving the performance of an entire org, let alone company, is extremely difficult. Individual contributors are much easier to judge, and thus live lives of sub-ordinance. Their inputs and outputs can be easily mapped. The trick of working, and thus living a nice life, is to rise to a level of plausible…

I like to believe Apple under Jobs was different.

Re: Many companies aren’t prepared to replace underperforming CEOs

#12

Theres no accountability above a certain level. In a stable business (am excluding new innovations), proving or disproving the performance of an entire org, let alone company, is extremely difficult. Individual contributors are much easier to judge, and thus live lives of sub-ordinance. Their inputs and outputs can be easily mapped. The trick of working, and thus living a nice life, is to rise to a level of plausible…

Wut? At higher level in an organization, there is a much greater chance that you will be fired for things that you really have little control over. Now, at the highest levels, the compensation usually matches this level of uncertainty, sometimes with golden parachutes as well, so if you are fired you're still sitting pretty. But, for me, I wouldn't define "a nice life" with having to deal with that much stress as hav…

I have worked at three large household names, two are in the top five market caps in the world. Logically what you say makes sense, I just havent seen it in reality.

Re: Many companies aren’t prepared to replace underperforming CEOs

#13

Theres no accountability above a certain level. In a stable business (am excluding new innovations), proving or disproving the performance of an entire org, let alone company, is extremely difficult. Individual contributors are much easier to judge, and thus live lives of sub-ordinance. Their inputs and outputs can be easily mapped. The trick of working, and thus living a nice life, is to rise to a level of plausible…

CEO is the easiest to measure, because you just pass through how the company as a whole is performing against it's goals.

The CEO has the most opportunity to set the goals, make excuses, blame scapegoats and gaslight the board.

Today OKRs have Narcissists running the asylum because they're always going to convince management that their glass is 70% full whereas yours is 30% empty.

Re: Many companies aren’t prepared to replace underperforming CEOs

#14

Theres no accountability above a certain level. In a stable business (am excluding new innovations), proving or disproving the performance of an entire org, let alone company, is extremely difficult. Individual contributors are much easier to judge, and thus live lives of sub-ordinance. Their inputs and outputs can be easily mapped. The trick of working, and thus living a nice life, is to rise to a level of plausible…

[deleted]

Re: Many companies aren’t prepared to replace underperforming CEOs

#15
post #9

Earlier quoted context omitted.

CEO is the easiest to measure, because you just pass through how the company as a whole is performing against it's goals.

I'm not even sure it should be "against [its] goals", because the goals are chosen by the CEO. (Choose bad goals and accomplish them, and you're still a bad CEO.) It's just company performance, IMO.

Yes but company performance is based on financial outlooks. You say 'We will be this efficient with our assets and hit these revenue numbers' and then you do or do not.

Re: Many companies aren’t prepared to replace underperforming CEOs

#16
post #2

In theory the Board's only job is to fire the CEO (and hire the next one) but if you've ever been to a board meeting they hardly are like that at all. They mainly are to align the company's "journey" with the "journey" of all the other companies the board members are involved with.

The board’s purpose is to pay supposedly knowledgeable people and set a schedule where they only have to work 10 hours a year.

Re: Many companies aren’t prepared to replace underperforming CEOs

#17
post #8
post #2

In theory the Board's only job is to fire the CEO (and hire the next one) but if you've ever been to a board meeting they hardly are like that at all. They mainly are to align the company's "journey" with the "journey" of all the other companies the board members are involved with.

Minor correction, the board's only job is to hire/fire the CEO, and decide whether the company can be sold to a prospective buyer

As a Delaware CEO, there is more than this. It depends on if the company is private or public. There is a duty of loyalty and a duty of care. Both of them have specific obligations, including hire/fire the CEO, sales, resourcing (e.g. financial plan approval), compliance, a neutral voice on comp and other stuff.

Re: Many companies aren’t prepared to replace underperforming CEOs

#18
One of the C-level guys at my current company should have been replaced a while ago. He ruins everything he touches but he's also one of the founders.

There are virtually no processes for anything which makes him untouchable. Whenever he fucks up, some PM or low level manager is fired due to their "low performance".

Is there anything non C-levels can do about it? Honestly I don't think so, all you can do is avoid the guy as much as possible and assume it's not the kind of company where you want to spend 5+ years.

Re: Many companies aren’t prepared to replace underperforming CEOs

#19

Theres no accountability above a certain level. In a stable business (am excluding new innovations), proving or disproving the performance of an entire org, let alone company, is extremely difficult. Individual contributors are much easier to judge, and thus live lives of sub-ordinance. Their inputs and outputs can be easily mapped. The trick of working, and thus living a nice life, is to rise to a level of plausible…

I like to believe Apple under Jobs was different.

It clearly was. It was a high performing organisation with few peers in corporate history. Apple under Jobs was perhaps one of the biggest value creating organisations in our recent memory, if not the most value creating organisation in the last 20/30 years. So whatever he did, it worked brilliantly.

The only analogue we have now is SpaceX imo. Tesla, if they crack self driving, maybe.

Re: Many companies aren’t prepared to replace underperforming CEOs

#20

Theres no accountability above a certain level. In a stable business (am excluding new innovations), proving or disproving the performance of an entire org, let alone company, is extremely difficult. Individual contributors are much easier to judge, and thus live lives of sub-ordinance. Their inputs and outputs can be easily mapped. The trick of working, and thus living a nice life, is to rise to a level of plausible…

I like to believe Apple under Jobs was different.

I think Apple is excluded when Jobs was there, as an innovative company. The iPhone, iMac, Macintosh, etc. Along with that, theres exceptions to every rule.
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