5 ms·

Is it normal for a public company to be so beholden to the whims of its CEO?

• jnmandal 8y ago
  He is also a very large shareholder
• minimaxir 8y ago
  Usually, the Board is a check on the CEO. Usually.
• saudioger 8y ago
  Apple was from time to time, but Jobs fortunately lived and died before the time where people said anything that came to mind on Twitter so it seemed much more tame.
• h4b4n3r0 8y ago
  Who would you replace him with without the value of the company diving off a cliff?
• twunde 8y ago
  Fairly often, especially for founding CEOs since so much of the company tends to be tied to the founders. And generally when a founder CEO is ousted there's two reasons: 1) there's an incredible amount of bad press (think of Uber and Travis or Papa John's John Schnatter) or 2) the board/investors think that they need to replace the founder with an experienced CEO (think Google). Here, only the first applies.
  • Rainymood 8y ago
    Elon Musk wasn't/isn't the founder of Tesla ...
    • twunde 8y ago
      Well crap. Thanks for pointing that out.
• dragonwriter 8y ago
  When the CEO by holds as much of the voting stock as Elon does, sure. I mean, Alphabet is probably more beholden to the whims of it's CEO. Is it usual for the CEO to be as visibly mercurial as Musk? Not so much.
• notatoad 8y ago
  Yes. It's not normal for the CEO of a publicly traded company to be quite so whimsical.