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The problem is there's no way to evaluate if CEO($10M) is actually that much better than CEO($2M). How would you retroactively test the counterfactual of hiring
by ForHackernews 6y ago
The problem is there's no way to evaluate if CEO($10M) is actually that much better than CEO($2M). How would you retroactively test the counterfactual of hiring the cheaper candidate?
Maybe in the future the stock price of robo-CEO companies can be used as a baseline. If you can't beat the robot index, then you're fired. (Obviously this will never happen because the board members are other CEOs, but you get the idea).
- devoutsalsa 6y agoThis. A more practical approach would be to embrace the fact that no one really knows what's going to happen & plan accordingly.
- texasbigdata 6y agoYou're spot on. That's why Harvard Busiess Reviews "best CEO" list is a trailing version of multi-year TSR (total shareholder return) combined with some ESG metrics. It's the best you can currently do.