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But who proposed those changes? Ultimately the CEO is accountable.
by alexpetralia 3y ago
But who proposed those changes? Ultimately the CEO is accountable.
- dboreham 3y agoThe board
- AlexandrB 3y agoI'm not an expert on corporate governance, but does a board of directors get into the nitty gritty of pricing models? I can totally believe they told the CEO to "bring in more revenue, or get replaced", but I have a hard time imagining they got too involved in the details how that would happen. Many board members sit on multiple boards or are CEOs of other companies. Do they really have time to do the kind of market research you'd need to propose such a change?
- hiatus 3y agoHaving been in board meetings where members went in on the nitty gritty of our _salesperson_ compensation structure, I would say yes.
- airstrike 3y agoPublic company boards?
- jojobas 3y agoThey'll sure scrutinize this or that, I'd be surprised if they _suggested_ a salesperson compensation structure.
- Groxx 3y agoNah, it'd fit. Everyone knows that sales is the only part of the company that actually makes money. Everything else is just a cost center that needs to be shrunk aggressively.
- airstrike 3y agoI'm an "expert" on corporate governance and I can say that no, boards do not get involved to the degree of making any market research -- they don't "initiate" initiatives such as a pricing model change (if you will pardon the redundancy). Public company CEOs (and their teams, really) come up with these plans. Boards do vet the executive's team business plan at the time of budgeting and during quarterly updates, but it's the CEO who is in charge of ideation and execution.
- otteromkram 3y agoBoard members aren't doing research, bud. Lol Research and information is compiled for them, which they then review. What're your thoughts on politicians who are in multiple subcommittees? Not smart enough?
- ezconnect 3y agoA majority holder on the board dictates how the company operates. It usually goes like give me a plan to get maximum revenue so I can collateral the company to get more debt to acquire other company or get me maximum profit so I can exit and invest on other company.
- mvdtnz 3y agoIt is not the role of the board to make executive decisions like this. That's what the 'E' in CEO means.
- anticensor 3y agoIn certain companies, everything above a certain size (money spent or count or items or staff affected) requires a board decision, by charter.
- airstrike 3y agoNegative, it's the CEO.
- paxys 3y agoUnity has been hemorrhaging money, and the shareholders want to see profits. The board and the CEO have no choice but to execute on their demands.