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Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

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231–240 of 386 posts

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#231

Earlier quoted context omitted.

>when COVID hit and tech companies saw large surges because investors and CEOs saw industries leaping 5-10 years into the future overnight, they hired to support that growth Yes, they all egregiously failed. A massive, widespread, collective failure for which they should lose their jobs, as many other people do. On the face of it, it was obvious, that's not even hindsight bias - it was the topsy turvy world that bad…

I think the fact that so many CEOs got it wrong is actually an argument for why the shouldn't be fired. If one or two CEOs got it wrong, you could argue that they were incompetent, ignorant, or greedy and they should have been better informed because plenty of other CEOs were. Everyone getting something wrong says to me that the failure wasn't down to individual mistakes and there was something larger at play.

If your CEO is a lemming, they are not capable of leading a company. They should be fired.

If you want to see a real leader, look at Tim Cook. He made decisions based specifically on where the company is, where it's going, and already factored in external factors (such as the pandemic growth). Contrast this to dozens of other "CEO"s who made a horrible decision hastily, executed layoffs horribly wrong, and then vaguely blamed a pandemic. The exact same lazy gameplan because these CEOs cannot lead, might as well replace them with chatgpt, maybe they'll write better layoff emails.

As a reminder, the CEOs core role is to steer the company. When that ship slams into an iceberg, you have failed your core role. What happens when workers fail their core role?

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#232
post #99

Earlier quoted context omitted.

Was it rational given the information we had at the time to think we would sustain that kind of rapid growth, the public health emergency wouldn't end, we wouldn't get inflation from the supply chain issues and the money printing?

The fear of another company outspending you out of business in the interim could also be a factor, so… maybe?

Outspending alone is not sufficient though. I prefer a “pull” model for hiring: hire gradually as more people are needed.

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#233

Earlier quoted context omitted.

>you mostly need your money now I don't believe this to be true. I imagine the majority of people in tech have their money stored in assets (stocks, house, car) as opposed to cash.

Stocks as in the thing that's worth half it was 6 months ago? House as in the thing you need to live in, have a mortgage to pay for, and can't liquidate? Car as the thing you need to move and loses value over time?

Or, stocks as in the thing worth the same as 2 years ago, 50% more than 3 years ago, or 100% more than 4 years ago...

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#234

Am I oversimplifying, or are the layoffs more of a predictable function of correcting for zero interest money without fear of employment lawsuits? Money was free (zero interest) during covid. Most tech companies increased staff to keep pace with each other. A lot of these hires were in support staff and junior positions needed to support low acquisition costs of new customers. Now that interest rates went up and grow…

I see the lack of accountability in this spree of layoffs as being similar to the lack of accountability in the recent automotive chip shortage. Tell me if this sounds familiar:

When the pandemic hit, car manufacturers saw travel plummet and decided that car sales would also plummet for the foreseeable future.

The executives in charge of the auto manufacturers responded by cancelling huge swaths of orders with their suppliers, believing that the new market conditions would be persistent.

18 months later, with vaccines arriving, demand for cars spikes. Auto manufacturers panic, and rush to place new orders with their foundries, who found new customers and now have 24-month lead times.

The MBAs shrug and say that there is no way anybody could have predicted this: after all, their competitors are in the same boat. They jack up prices and reap the rewards of their poor decision making, but the company and consumers would both be in a much better position if the executives had done their job properly instead of hammering the panic button.

Maybe this lack of accountability at the top is a deeper, more systemic issue.

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#235

Earlier quoted context omitted.

It is a very odd discussion to have since, even when running a company well, no public company should be compensating its CEO to the tune of even 1 million a year. It is absolutely a ruling class leeching off society that this happens. It doesn't happen everywhere or even in america in the past, big companies can be run without this behavior. It isn't supply and demand, it is cronyism. Should a CEO be allowed to get…

Isn't it up to the shareholders to decide this?

You are replying to someone who is saying "I don't think it's good that things are this way" with "things are this way". I hate these kinds of comments. The other guy knows how it's not up to him to make this decision. That doesn't mean he shouldn't voice his opinion.

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#236

Regardless of individual opinions on whether CEOs should be terminated for layoffs or not - there's a surprising amount of comments here that seem to not understand that growing companies don't hire for today, but for where they want to be tomorrow. Where you want to be tomorrow is based on where you and your investors believe the world is going. If the world materially changes enough to shift your expectations about…

It is a very odd discussion to have since, even when running a company well, no public company should be compensating its CEO to the tune of even 1 million a year. It is absolutely a ruling class leeching off society that this happens. It doesn't happen everywhere or even in america in the past, big companies can be run without this behavior. It isn't supply and demand, it is cronyism. Should a CEO be allowed to get…

Yes, the poor shareholders that don't work for their money should be given more of it. Tim Cook doesn't deserve any of the $2T value Apple created during his tenure... it should go to the trust fund kids.

Instead of complaining about executives earning so much, why don't we find ways for you and I to emulate their bargaining power instead?

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#237
post #215

Earlier quoted context omitted.

Your argument is nonsense unless you can explain why you pick your cutoff point at $200 million. Plenty of people in the USA would argue that $200k is a bad number: those overpaid software developers with their share incentives need to be stopped /s. Shareholders should revolt against those rich software developers? > It is absolutely a ruling class leeching off society that this happens I mean, the same argument can…

> Shareholders should revolt against those rich software developers? Of course they should. Hiring a few, strategic, expert developers at those rates might make sense. However, paying 200k+ for a newly graduated student with no experience should have been questioned firmly.

Yes, it would be much better for inequality if everyone's salaries were low and the trillions of value created in tech to go to a couple VCs, their LPs and their trust fund kids.

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#238

Earlier quoted context omitted.

It is a very odd discussion to have since, even when running a company well, no public company should be compensating its CEO to the tune of even 1 million a year. It is absolutely a ruling class leeching off society that this happens. It doesn't happen everywhere or even in america in the past, big companies can be run without this behavior. It isn't supply and demand, it is cronyism. Should a CEO be allowed to get…

And yet Steve Jobs transformed Apple from 90 days to bankruptcy to the biggest company in the world. Was he worth $200 million in compensation? Hell yeah. Because he is responsible for that wealth creation. This kind of turnaround also happened at Barnes & Noble, all due to one man - the CEO, James Daunt. https://tedgioia.substack.com/p/what-can-we-learn-from-barne... CEOs get paid a lot because they are crucial to t…

But even poorly performing CEOs get paid 100s of millions. Why?

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#239

Earlier quoted context omitted.

I just hate the CEO's saying "I take full responsibility for what happened" I call bullshit. If you did you'd quit in shame.

I thought what they meant was just "you are laid off not because you had performed poorly". Of course, it is still the CEO's decision to over-hire, but the parent suggested that over-hiring was not CEO's fault either, but a necessary move to capture the additional growth.

Again it's the statement like they some how lost something.

Now if they hired those people by saying "well he hire for the quarter so you know bad quarter your probably gone."

No they made big statements about how they hire for the long term.

Re: Tech CEOs Should Be Held Accountable, or Even Fired, Amid Layoffs

#240
post #229

I'm surprised that nobody links to the best proposed solution to this problem, so I will: https://mason.gmu.edu/~rhanson/dumpceo.html The US could, if it was inclined, legalise prediction markets & investors could subsidise markets for stock price conditional on the CEO stepping down, thus revealing in the strongest possible wisdom-of-the-market sense whether the CEO is going a good job. This would solve the problem…

there would need heavy moderation in order to avoid nefarious things like contract killings
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