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> Nobody is doing that for $1m/year when one wrong decision could end up costing 1000x more than their salary and hurting livelihoods of the workers. Exactly.
by turbinerneiter 7y ago
> Nobody is doing that for $1m/year when one wrong decision could end up costing 1000x more than their salary and hurting livelihoods of the workers.
Exactly. The wrong decision costs _the company_ a billion, it hurts the livelihoods of _the workers_. Incompetent, even criminal, managers more often than not pay for their mistakes with early retirement and severance packages.
Winterkorn got a 10+m bonus when he stepped back and receives over one million in additional pension payments each year. That's the guy who is at fault for the Emssions Fraud Scandal.
John Cryan, who oversaw the further demise of Deutsche Bank, was kicked with a 10m severance package. During his time as CEO, the Deutsche Bank share went from 30€ to 15€.
- amw 7y agoSo that brings us to the next question: Why on earth are we putting the entirety of those (business) life and death decisionsinto the hands of essentially a single person? Why is the effort not spread out over a broad swath of management-capable people at all levels of the company, when we're against monarchy in so many other aspects of life?
- ameister14 7y agowe're not against monarchy because it's inefficient, or because kings are always bad. We're against it because when a king is bad, they're really really bad for their subjects. That doesn't have a lot to do with a public company.