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Because if you want someone with skill to enter and run (or recover) your company, he won't do it for the sake of an adventure. He usually gets offered a big re
by rickdeckard 3y ago
Because if you want someone with skill to enter and run (or recover) your company, he won't do it for the sake of an adventure. He usually gets offered a big reward for achieving a goal he cannot fully judge yet, and a small compensation in case he fails (and ultimately leaves).
If such a person chooses the "golden parachute", the "golden rocket" he had to commit on hiring was maybe unachievable in first place...
- mhb 3y agoThe pieces of compensation can all be negotiated. The board could make an offer that trades an element with a sensible incentive for staying (or even just more cash) for an element that is an incentive for leaving.
- fatherzine 3y agoThis cuts both ways. Are there /really/ so few 'someone with skill' people that can run your company, often into the ground? Or it's more of an incestuous network of very connected people that sign fat checks to each other, because shareholders are divided and remote, so nobody is paying close attention anyways?
- ProjectArcturis 3y agoThe second one.
- rickdeckard 3y agoSurely alot of the latter. But it's not a matter of being few, it's also a matter of who has the support of the board / shareholders / owners to actually steer the company. Even if you're the best for the job, if you don't have the backing of the board you won't get anything drastic done. Whether those who have the support of the board are really the best ones for the job, that's another question... From my experience the additional aspect is also that shareholders and/or the management board often have unrealistic expectations on what the company is capable of, and are unhappy when facing reality. So such a parachute can also be useful to force the company to work through tough decisions, because firing the person who insists on them will not be cheap either.