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It reminds me of that old quote that democracies die when the citizens realize they can vote themselves money. It's the same with these companies, the upper man
by atrus 3y ago
It reminds me of that old quote that democracies die when the citizens realize they can vote themselves money. It's the same with these companies, the upper managements realizing they can just give themselves more money and coast on their companies momentum.
It's not the innovators dilemma, it's the c-suite lines their pockets while the company burns dilemma.
- nradov 3y agoIt's the eternal principal/agent problem. Those things go in cycles. When management goes too far off the rails then corporate raiders and private equity eventually take over to replace management and unlock latent value. Unfortunately, the managers who caused the problem still often end up fabulously wealthy while regular employees get screwed. This problem can be somewhat ameliorated by compensating executives primarily using equity with long vesting or lock-up periods. That keeps their interests aligned with long-term shareholders.
- scotty79 3y agoIt doesn't really fit the modern collapse. Democracies seem to decline when oligarchs extract so much wealth that the entire economy suffers and common people flock to strong political figures to bring back order and prosperity. > citizens realize they can vote themselves money Although this certainly sounds true if you consider just the richest citizens and by "vote" you mean inflence the votes.