2 ms·
It looks stupid because you're assuming all actors have the same goal: make the company they work for the "best," however that is measured. But that's often not
by scott_s 8y ago
It looks stupid because you're assuming all actors have the same goal: make the company they work for the "best," however that is measured. But that's often not the goal of executives. They are often more interested in protecting and gaining power.
- mathattack 8y agoPrincipal-Agent problem. :-) The interests of managers frequently diverge from the owners, and even each other. You see this with execs sub-optimizing for their personal metrics (or size of empire) at the expense of the whole. Offering equity helps, but if people’s contribution doesn’t impact the stock price, there is less incentive to act holistically.