181–190 of 252 posts
https://corpgov.law.harvard.edu/2022/10/06/the-activism-vuln...
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I have to wonder if it should be considered a legal conflict of interest for a CEO to sit on the board at all, forget being chairman. The powerful really love rigging stuff in their favor huh
That whole setup could use some free market love.
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I’d say this is false. Accountability becomes easier as you go up. For then owner, everything is on them. They’re the owner. They pick the CEO. They can lose their money. For the CEO, everything is on them as well, but the worst that can happen is they get sued or fired. They pick the people who are responsible for sales, costs, etc. Any failure in these areas is very simple to attribute to the executive in question…
A large company is like an oil tanker. Its never clear whether that oil tanker can be turned fast enough to avoid the ice berg. And thus, its never clear whether its the CEOs fault, or the circumstances. Too much complexity.
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…
The board has other jobs. They have to sign off on the validity of financial statements in public companies, for instance. CEOs bring them decisions that need to be made like granting a conflict of interest waiver to a CXO employee. Just two examples that they usually are required to make. They also help with other major course setting.
ok so what do CEOs do? hell, what does my manager do? other than calendars full of meetings, I don't know what any manager does. as a technical person my entire career, the only things that my managers have ever done is to have regular meetings where we talk about non-work stuff, or they tell me that I am in trouble and/or fired. the only thing that I know that they actually do is make technical decisions based on no…
Don't know what CEOs do, but a good manager is just supposed to unblock you from business. They are there to make sure you don't have to worry about the CEO stuff and whatever, you can just focus on your job. If your manager is making technical decisions for you, something might be wrong!
I've only seen a CEO let go once in my career. And it wasn't due to performance, it was due to an alleged sexual assault which quietly and quickly disappeared. I imagine with the various golden parachute clauses and valuable social connections with other companies (I'd wager there's some skeletons in closets being held hostage too), it's too damned expensive to let a CEO go for anything less than a scandal.
Well if a company's stock is down 42 percent like the average for fired CEO's in the article, it may also be way more expensive to keep them. Are you counting CEO's that retired (ergo possibly forced out nicely) to spend time with family or whatever?
My sample size is not huge (a dozen or so), but only one CEO departure. Take it as you wish.
AI CEO as a service, anyone ?
ok so what do CEOs do? hell, what does my manager do? other than calendars full of meetings, I don't know what any manager does. as a technical person my entire career, the only things that my managers have ever done is to have regular meetings where we talk about non-work stuff, or they tell me that I am in trouble and/or fired. the only thing that I know that they actually do is make technical decisions based on no…
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CEO is the easiest to measure, because you just pass through how the company as a whole is performing against it's goals.
If ExampleCorp has an objectively fantastic CEO, one who genuinely cares about the company and the well-being of all his employees, and actually understands something about how to make those better... ...and then he retires... how long would it take for you to be able to tell that his not-terrible-but-kinda-lousy replacement is actually not doing a good job? The first CEO set things up so that they'd run well; the le…
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If ExampleCorp has an objectively fantastic CEO, one who genuinely cares about the company and the well-being of all his employees, and actually understands something about how to make those better... ...and then he retires... how long would it take for you to be able to tell that his not-terrible-but-kinda-lousy replacement is actually not doing a good job? The first CEO set things up so that they'd run well; the le…
Companies can and do change quite quickly under new leadership - case in point, Twitter right now.
Others don't.