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

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

#61

Post by rcme »

mabbo wrote: post #20

The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it. Blaming the CEO for doing the job they were hired to do seems short-sighted. Blame the broken system that incentivizes this, that makes doing it profitable. And then, let's change the system.

> The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it.

How is failing to predict market conditions a few months into the future and over hiring part of making a publicly traded company money? If anything, these layoffs are an admission from management that they're wasting money.

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

#62

Post by colinmorelli »

ulfw wrote: post #33
mabbo wrote: post #20

The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it. Blaming the CEO for doing the job they were hired to do seems short-sighted. Blame the broken system that incentivizes this, that makes doing it profitable. And then, let's change the system.

Then why did they hire them? Something must have gone wrong if you hire 1000 and then fire 1000 a year later. And no, it's not "the economy" for every single (extremely diverse industry) tech company.

It is "the economy" insofar as it represents investor sentiment. Investor sentiment for the last 10 years was to fund losses in exchange for capturing market share. That sentiment is changing as investors seek to prioritize profitability and more sustainable growth trajectories. This is, generally, happening across the macro market. It's just that "tech companies" were most susceptible to the grow-at-all-costs mindset, so they're shedding the greatest weight now.

When that shift happens, if you're the company that continues the "old" (I.e. likely always unsustainable) way of operating, then you'll be left holding the bag.

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

#63

Post by papito »

mabbo wrote: post #20

The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it. Blaming the CEO for doing the job they were hired to do seems short-sighted. Blame the broken system that incentivizes this, that makes doing it profitable. And then, let's change the system.

Yes, let's treat the sacred shareholder as a needy spoiled child.

So, make "as much money as possible" while building a solid and sustainable business long-term, or make as much money as possible within a quarter or two and then walk away from ruins with a fat bonus for a handful of people? Because we have seen this before, and it ends with gutted, non-competitive husks of companies - GE, Boeing, to name a couple.

This idea that the shareholders need to get 10x returns even if it means a destroyed business has gone out of control. Pure capitalism is bad enough, but mix insatiable instant gratification, and it's completely destructive.

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

#64

Post by blitzar »

blackoil wrote: post #60
njovin wrote: post #30

Earlier quoted context omitted.

I'd like to see a few recent examples of CEOs making decisions for the future health of the company that knowingly lower the stock price for more than 2Q.

Zuckerberg did this. He correctly or incorrectly believes, Metaverse to be the future and so he invested in it knowing that short term profit may fall because of this.

He did so however on the basis that it would increase the share price. Facebook needed a narrative to pitch to shareholders, the metaverse was the one they selected.

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

#65

Post by next_xibalba »

toomuchtodo wrote: post #22
mabbo wrote: post #20

The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it. Blaming the CEO for doing the job they were hired to do seems short-sighted. Blame the broken system that incentivizes this, that makes doing it profitable. And then, let's change the system.

> The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. This is a poor take. The function of the CEO of a publicly traded company is to execute on major objectives of the firm. This might be optimizing for max profit, but it might not, depending on what your majority shareholders communicate to the board and management (as well as how they vote their shares). A…

This is a poor, uninformed take. The incentive structure of public companies is only to maximize share price. If a CEO fails to do this, an activist investor will spot the opportunity, buy up shares, and agitate for strategy or leadership change until share price maximization is once again the top priority.

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

#67

Post by qup »

duped wrote: post #56
glitchc wrote: post #39

The only solution is to form a guild for software engineers. Control access to the guild through credentials and other means. Provide mentorship and apprenticeship opportunities through the guild. Allow the guild to negotiate rates and working conditions with the industry. If actors can do it, why can't we? If you want to level the playing field with tech CEOs, that's the way to do it.

Why call it something weird? You're talking about a union.

screen actors guild

Writer's guild of America

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

#69

Post by gsatic »

mabbo wrote: post #20

The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it. Blaming the CEO for doing the job they were hired to do seems short-sighted. Blame the broken system that incentivizes this, that makes doing it profitable. And then, let's change the system.

That's what Mario Savio said. Bodies upon the gears people.

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

#70

Post by AlbertCory »

foul wrote: post #36
toomuchtodo wrote: post #22

Earlier quoted context omitted.

> The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. This is a poor take. The function of the CEO of a publicly traded company is to execute on major objectives of the firm. This might be optimizing for max profit, but it might not, depending on what your majority shareholders communicate to the board and management (as well as how they vote their shares). A…

> The function of the CEO of a publicly traded company is to execute on major objectives of the firm. Amongst the major objectives of a firm there is honoring debts and shareholders are mostly creditors.

> shareholders are mostly creditors

You need to understand the fundamental difference between debt and equity.

A creditor gets his money back with interest, and that's all. The firm could prosper or flail and it makes no difference as long as they pay him back. If the firm goes bankrupt, he's first in line for what's left of it.

A stockholder might get nothing back, but if the firm prospers, he shares in it. He's last in line in a bankruptcy.

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