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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

#101

Post by skippyboxedhero »

fdgsdfogijq wrote: post #3

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…

The reason why is quite clear if you ask whether this would happen at a company that you owned 100%.

The problem of a diverse shareholding base supervising a company has not been solved. If you are an unhappy shareholder, you don't push for change...you just sell and move on to the next one.

Within tech, there is also a cultural issue because so many of these companies end up with VC-led boards or VC-selected managers who are, to be frank, quite terrible (that is the problem with 20 year management teams...the problems of a large company are different to those of a smaller one). Growth at any cost always ends badly. Interestingly, I think some of the companies that went through the late 90s ended up internalizing that...telecoms did, some of older chip companies, unf most companies will always end up learning this lesson too late.

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

#102

Post by BlargMcLarg »

kennend3 wrote: post #91
sli wrote: post #75

Earlier quoted context omitted.

> Is there anything non C-levels can do about it? Labor unions and strikes.

Can you provide some examples of where a labour union has went on strike to remove a C-Level person? I eagerly await your examples.

A strike wouldn't be to remove a C-level as much as really drill home the consequences of poor decisions. Individuals are still too lenient in letting themselves go through the burnout treadmill for the upper trenches to feel it.

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

#103

Post by eftychis »

kennend3 wrote: post #85
MuffinFlavored wrote: post #64

Earlier quoted context omitted.

> He ruins everything he touches but he's also one of the founders. Statements like this are always so interesting to me online from the "there's two sides to every story" perspective. Why not devil's advocate it and try to walk through life maybe not thinking in blanket statements? How can somebody who ruins everything be successful at all in life? Maybe I just have more to learn...

> Maybe I just have more to learn... As someone who has been with large multi-nationals for a very long time let me give you some examples. 1) "failing up". Sometimes you cant deal with your manager or the situation except to make them look good, and eventually they get promoted up and out of your way. 2) "Protected class" Think "nepotism". Let's say that "B" doesn't do well, but he is very close to the "CxO". who in…

Best move in (2) cases, I have been thinking, is to move them aside: have them do exploratory work and perhaps not have people under them.

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

#104

Post by zeristor »

MichaelZuo wrote: post #95
goopthink wrote: post #61

The company board’s sole job is to hire and fire the CEO when appropriate: https://reactionwheel.net/2021/11/your-boards-of-directors-i... However, having been on a team that prepares board materials and also having presented to a company board, I can tell you that the information they receive is extremely carefully managed in a way that allows responsibility to seem to flow downwards rather than upwards. What you se…

This is usually resolved by requiring a minimum ownership stake for each prospective board member, and to make sure it represents a significant fraction of their total net worth. To guarantee that the board would lose their shirts if they make decisions completely opposite to reality, thus motivating a more thorough investigation of what they see and hear.

Sounds a bit like buying a commission, by having enough money you proved worthy of it.

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

#105

Post by [deleted] »

hypersoar wrote: post #94

I'm thinking of a Jadzia Dax in Star Trek: Deep Space Nine. Jadzia is among the lucky few among her race, the Trill, implanted with a "symbiote" carrying the memories of all of its previous hosts. Carrying a symbiote is an unrealized dream for many Trill who wash out of the rigorous application and training process and are told they're incompatible. In one episode, one such disgruntled fellow tries to steal Jadzia's.…

[deleted]

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

#106

Post by klyrs »

marcosdumay wrote: post #92
thesuitonym wrote: post #30

Earlier quoted context omitted.

> It's like there's a breed of person who is just "board member". Typically known as "capitalists", the bourgeoisie, the 1%, etc.

> the 1% How many are they again? I doubt there are millions of them on the US.

When many people say 1%, they're really thinking of the .01% or less.

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

#107

Post by KerrAvon »

hypersoar wrote: post #94

I'm thinking of a Jadzia Dax in Star Trek: Deep Space Nine. Jadzia is among the lucky few among her race, the Trill, implanted with a "symbiote" carrying the memories of all of its previous hosts. Carrying a symbiote is an unrealized dream for many Trill who wash out of the rigorous application and training process and are told they're incompatible. In one episode, one such disgruntled fellow tries to steal Jadzia's.…

I mean, we don't need to pay them that much. These obscene salaries weren't the norm a few decades ago. They're the end result of Reaganite tax policies failing to tax super-high-earners progressively.

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

#108

Post by goopthink »

whatshisface wrote: post #79
goopthink wrote: post #61

The company board’s sole job is to hire and fire the CEO when appropriate: https://reactionwheel.net/2021/11/your-boards-of-directors-i... However, having been on a team that prepares board materials and also having presented to a company board, I can tell you that the information they receive is extremely carefully managed in a way that allows responsibility to seem to flow downwards rather than upwards. What you se…

Are board members rewarded for digging in beyond what's provided to them?

Insofar as board members are compensated by stock grants, they are incentivized to increase the stock price. But if a board member starts trying to do independent verification of what the CEO/team is telling them, that's a sign of mistrust. Because the board primarily interfaces with the executive team, would they know where to start?

That said, I've seen some board members try this out by offering to help/chat with some under-performing teams that they have expertise working with and asking light questions/giving advice... but having been on the receiving end of a conversation like that, it often feels like there is a lot of politics going -- you don't know if someone genuinely wants to be helpful, is vetting your capabilities and fit for the role (based on the trickle-down responsibility), or is trying to do independent fact finding (trickling it back up).

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

#109

Post by digitalsushi »

hypersoar wrote: post #94

I'm thinking of a Jadzia Dax in Star Trek: Deep Space Nine. Jadzia is among the lucky few among her race, the Trill, implanted with a "symbiote" carrying the memories of all of its previous hosts. Carrying a symbiote is an unrealized dream for many Trill who wash out of the rigorous application and training process and are told they're incompatible. In one episode, one such disgruntled fellow tries to steal Jadzia's.…

where i work we joke that everyone with a title of director and up is just playing "corporate Highlander"

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

#110

Post by drevil-v2 »

candiddevmike wrote: post #83
BlargMcLarg wrote: post #74

Earlier quoted context omitted.

This gets said so often yet it doesn't necessarily align. Personal responsibility is pushed aggressively, too. More often, ICs don't get all the information. It's not about having a clue as much as information asymmetry. All those meetings should imply as much, anyway.

See any managers response during stand up: "in meetings all day, oh btw Blarg I need to talk to you about a release process". That's it? That's all you want to share?

I have been in that position delivering that update. The kind of work you have to do as VP/Director does not translate well into the task oriented stand up updates that developers give. Often times I would be working across multiple projects/initiatives - some I am responsible stakeholder, some I am an informed stakeholder, some are with external teams or companies - and most of these projects are over long periods of time - as in it is not 2 point or 4 point story item that can be updated in 60 seconds over stand up.
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