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There are cases where the CEO deserves many millions of dollars. They are supposed to move the business in ways that are growing very fast and profitable. The
by dpweb 10y ago
There are cases where the CEO deserves many millions of dollars. They are supposed to move the business in ways that are growing very fast and profitable.
There are all kinds of startups that Yahoo could have bought or invested in, all kinds of areas that have the potential to be wildly successful. Who would have thought Amazon, a retailer, would be the platform of the cloud computing world.
It's the CEO job to see this, what not everyone else can see. That's what deserves the many millions of $.
- chris_wot 10y agoHas Marissa Mayer achieved what you say is the job of a CEO, though?
- usrusr 10y agoAmazon is an interesting case. With their radical reinvestment strategy of quiet, organic growth, they are the absolute anti-Yahoo. Off the top of my head, I can't think of a single high profile acquisition that Amazon did, whereas Yahoo has a reputation for being the place where the flickrs of the world go to die. Amazon contrasts this with being more like a old economy corporation with merely an internet front. They invest in boring brick-and-mortar logistics-factories, computing-factories and so on that no "true internet company" would touch with a long stick. Maybe Yahoo has long ago accepted that their only remaining shareholders must be in it for the exciting, flashy news headlines. In that case, they might feel compelled to go for an exceptionally expensive CEO only for the news value, just like very expensive watches are not bought despite their price but because of it. Marissa Mayer then would not have made it if she offered to do the job for half the price, not beating everybody else's CEO spending would have been out of character for Yahoo.