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Why is length of service relevant for the C Suite? It’s irrelevant for the rank and file, yet we baby these executives and boards. We’re not even pretending t

Why is length of service relevant for the C Suite? It’s irrelevant for the rank and file, yet we baby these executives and boards. We’re not even pretending to care about “fiduciary duty” anymore.

geodel 3y ago
> It’s irrelevant for the rank and file, It is not. Most places I have worked, longer term employees are given recognition, extra bonus, more vacation days and so on.
- someweirdperson 3y ago
  That's still less than +x% when switching to a new job every year.
highfrequency 3y ago
At the scale of Netflix, as long as keeping this guy around for $40m improves the value of the business by 0.02%, it would be irresponsible as a fiduciary to replace him with a cheaper CEO. Given that Sarandos has been in charge of content at Netflix for 23 years and likely had something to do with the business's past success, this does not seem like a big stretch.
- badpun 3y ago
  > At the scale of Netflix, as long as keeping this guy around for $40m improves the value of the business by 0.02%, The question is also, would he quit if they cut his compensation in half? If not, it's free money for the business. The companies nickle and dime every one of its business relations, why shouldn't they do it to the CEO? He's one of the bigger expense lines.
- Osiris 3y ago
  How do you know the replacement CEO wouldn’t increase the value by >0.03%?
- snovv_crash 3y ago
  0.02% this year
borski 3y ago
> It’s irrelevant for the rank and file It’s absolutely not. It is used for all sorts of things, including PTO accrual, bonuses, multi-year tenure benefits, etc.
- deleted 3y ago
  [deleted]
- peoplearepeople 3y ago
  What workplaces are have PTO tied to tenure? Wouldn't that discourage new people from joining?
  - mkipper 3y ago
    This has been the policy at every boring non-tech company I've ever worked at. You get hired with a certain amount of PTO, and that number starts to grow after some initial waiting period (e.g. 3 years). It's not uncommon for company lifers who have been there for 20+ years to have doubled or tripled the PTO they had when they started. That being said, I've never heard of a place that _literally_ ties PTO to tenure -- if you join the company in a senior position, you can always negotiate to start with a similar amount of PTO as someone who worked their way into that position internally.
  - borski 3y ago
    Literally nearly all of them. PTO accrual is the most common form of PTO granted; you accrue a certain number of PTO hours for every week you work, and your maximum PTO per year changes with your tenure, starting at, say, 10 days per year and maxing out at, say, 25 days per year, for example. You can usually also roll them over to the next year up to some amount.

geodel 3y ago

> It’s irrelevant for the rank and file, It is not. Most places I have worked, longer term employees are given recognition, extra bonus, more vacation days and so on.

someweirdperson 3y ago
That's still less than +x% when switching to a new job every year.

highfrequency 3y ago

At the scale of Netflix, as long as keeping this guy around for $40m improves the value of the business by 0.02%, it would be irresponsible as a fiduciary to replace him with a cheaper CEO. Given that Sarandos has been in charge of content at Netflix for 23 years and likely had something to do with the business's past success, this does not seem like a big stretch.

badpun 3y ago
> At the scale of Netflix, as long as keeping this guy around for $40m improves the value of the business by 0.02%, The question is also, would he quit if they cut his compensation in half? If not, it's free money for the business. The companies nickle and dime every one of its business relations, why shouldn't they do it to the CEO? He's one of the bigger expense lines.
Osiris 3y ago
How do you know the replacement CEO wouldn’t increase the value by >0.03%?
snovv_crash 3y ago
0.02% this year

borski 3y ago

> It’s irrelevant for the rank and file It’s absolutely not. It is used for all sorts of things, including PTO accrual, bonuses, multi-year tenure benefits, etc.

deleted 3y ago
[deleted]
peoplearepeople 3y ago
What workplaces are have PTO tied to tenure? Wouldn't that discourage new people from joining?
- mkipper 3y ago
  This has been the policy at every boring non-tech company I've ever worked at. You get hired with a certain amount of PTO, and that number starts to grow after some initial waiting period (e.g. 3 years). It's not uncommon for company lifers who have been there for 20+ years to have doubled or tripled the PTO they had when they started. That being said, I've never heard of a place that _literally_ ties PTO to tenure -- if you join the company in a senior position, you can always negotiate to start with a similar amount of PTO as someone who worked their way into that position internally.
- borski 3y ago
  Literally nearly all of them. PTO accrual is the most common form of PTO granted; you accrue a certain number of PTO hours for every week you work, and your maximum PTO per year changes with your tenure, starting at, say, 10 days per year and maxing out at, say, 25 days per year, for example. You can usually also roll them over to the next year up to some amount.