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No it's not obvious. It's actually the #1 problem in Big corporations' governance. If you are a For Profit company with share-holders, you can define performan
by fcantournet 6y ago
No it's not obvious.
It's actually the #1 problem in Big corporations' governance.
If you are a For Profit company with share-holders, you can define performance as money gain by shareholders, i.e financial performance.
This is always short term and it's the #1 cited reason why private long term investment has basically disappeared in the last 40 years.
BigCo are managed with a 6m horizon and both eyes lock on the stock prices.
But if you are a non-profit how do you define performance ? How do you define Good ?
What horizon do you set ?
And BTW : why do you think higher comp will lead to better work ?
Was Einstein the most paid individual ?
- NoOneNew 6y ago>why do you think higher comp will lead to better work ? While I do partially agree, I don't fully. Those who are good at what they do get paid more. Now, that means they generally start competent and well intentioned. No amount of money fixes an idiot with ill will. I think a lot of firms are ignoring that concept in the past 10-20 years. The short term outlook is also a huge problem. You see it often in action on Bloomberg with the markets. It's Christmas or Crisis every other day, absolutely ignoring long term positions. To me, that's the difference between capitalism and profiteering. Capitalism is a long term infrastructure play to make money (like Disney buying Marvel and setting up the MCU in a way that can create many, many products that build off each other) while profiteering is just turn and burn, short-term plays ignoring more than 12 calendar months. Perhaps your non-profit question is the real kicker. How does Mozilla measure success? Market penetration? The end of IE? But then by taking in Google money, does that make Chrome a competitor or ally? From a user standpoint, Chrome isn't exactly the "good guys" either due to epic tracking. So that in turn makes a bit of a conflict of interest when you toot your "privacy and user first" horn while you're paid by one of, if not the biggest privacy invader... ever. Financial independence would be a good current metric... but with the ceo pay hike... I doubt that'll happen.