3 ms·
the bad is not possible, if a CEO make a decision with a chance of 50/50 being a good or bad decision. if it is a good decision CEO makes lots of money, if it i
by mars4rp 7y ago
the bad is not possible, if a CEO make a decision with a chance of 50/50 being a good or bad decision. if it is a good decision CEO makes lots of money, if it is bad they get 0.
that is not a good thing, out of 2 monkeys throwing darts one of them will make money.
- mulmen 7y agoThats not how business or probability works.
- mars4rp 7y agoit is defiantly how probability works. if you bet on an event with 50% chance of earning $1 or 0. your bet is worth $0.50 you need the bet to worth $0, and that is only possible by making CEOs financially liable, and that would never happen, nor is realistic, a CEO's decision could cost company billions. so by this analogy the riskier the CEO's actions the outcome is greater for them. if the bet pays off, they win big, if it doesn't the shareholders lose.