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Isn't the CEO pay here a classic example of principal-agent problem? In a commercial company, there would be activist investors pushing to cut manager's pay an
by golergka 6y ago
Isn't the CEO pay here a classic example of principal-agent problem?
In a commercial company, there would be activist investors pushing to cut manager's pay and change management. But I'm not familiar with this type of NGOs so well; who is supposed play the role of principal here? And are they not playing it properly?
- hayd 6y agoIn an NGO they need to secure funding, too much bloat (including director-level pay) could make fundraising more difficult. ...I guess if you get your money from a disinterested Google rather than fundraising there really isn't anyone to push back against inefficiency/poor performance. Really the board should have been pushing back/course correcting, but sadly even in private companies boards are usually weak af (simply doing the ceos bidding).
- athms 6y agoThe for-profit entity (Mozilla Corporation) is wholly owned by the non-profit entity (Mozilla Foundation) and Mitchell Baker leads both organizations. That is a conflict of interest. She should resign from one entity, but there is a compelling argument that she is a failure at leading both organizations. FYI -- The foundation owns the IP, while the corporation manages software engineering and the Google search deal.