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Which tech CEOs were fired for making the wrong call and overhiring? I don’t mind eye popping executive pay for exceptional performance, I mind that those posi
by bradleyjg 3y ago
Which tech CEOs were fired for making the wrong call and overhiring?
I don’t mind eye popping executive pay for exceptional performance, I mind that those positions have zero accountability.
- spdy 3y agoBecause they don't decide this on their own. A smart CEO gets board approval before going on a hiring spree, so afterwards, if the CFO shows a negative forecast, everyone can go, 'Oh, who could have seen this?' CEOs get fired if the board loses trust in their abilities.
- okaram 3y agoI also think some of those CEOs should be fired, but I don't even think there was over hiring... It's more that demand went up by a lot suddenly, and then down by a lot suddenly.
- bradleyjg 3y agoThe weren’t able to integrate the hires in time to meet the demand spike before it went away. So it would have been optimal to not hire into it. Was that very difficult to see at the time? Sure, but what are those astronomical comp packages buying? Making very difficult calls correctly is their jobs.
- underdeserver 3y agoIn the eyes of the CEO and the shareholders, was it the wrong call? The CEO hires the employees assuming ZIRP continues. ZIRP ends. He fires all the extra employees, and gets to fire employees he doesn't need from other departments too along the way. Shareholders benefit either way, and the expendable ex-employees' well-being, visa status, healthcare, etc. is someone else's problem. Market is bad so the remaining employees can't really complain either.
- bradleyjg 3y agoMeanwhile he spent a bunch of money on unnecessary employees. Foreseeing the end of zirp and how it will impact the business is part of the job.