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There is little evidence that highly paid executives make better decisions than other similarly educated individuals. They're just "smarter" in the sense of get
by coliveira 6y ago
There is little evidence that highly paid executives make better decisions than other similarly educated individuals. They're just "smarter" in the sense of getting into a company and/or field that pays more for similar expertise. The reality shows that huge companies make lots of mistakes, but they're often protected from these mistakes by their strong position in the market. See for example companies such as IBM, GE, GM, etc.
- bosie 6y agocan you provide some references to the first sentence please. I am genuinely curious how you would create an experiment/data analysis to show this.
- jmcgough 6y agoAn excellent example would be Boeing before their merger with McDonnell Douglas. Boeing originally had an engineering-lead culture. After the merger, their exec salaries ballooned, profits grew, but engineering quality suffered. Lucratively high exec pay is a recent phenomenon. There were plenty of successful companies before the last 40 years. See https://www.theatlantic.com/ideas/archive/2019/11/how-boeing-lost-its-bearings/602188/ https://www.theatlantic.com/ideas/archive/2019/11/how-boeing...
- bosie 6y agosorry, i am not connecting the dots. how is this connected to the claim and/or how does it show the claim is correct?