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It might take awhile for systems to disintegrate. And the executives might move on after collecting a tidy bonus. The incentives are too short term for anyone t

by yareal 2y ago

It might take awhile for systems to disintegrate. And the executives might move on after collecting a tidy bonus. The incentives are too short term for anyone to be concerned about the finding out stage.

spacemadness 2y ago
It’s amazing people keep buying into the delusion that any of the people at the helm of these companies have a vested interest in long-term health of the company. What incentive is there with this much money floating around as an executive? You’re already set for life.
robertlagrant 2y ago
Okay, so in this context what does that mean? Are you saying the executives don't need the workers after all?
- yareal 2y ago
  When the pilot steps away from the controls, the plane doesn't instantly crash, but you do still need a pilot. An exec thinks labor is a pilot, but only thinks about the 3 minutes after the pilot moves away, then declares, "see? No pilot needed!" Then the exec jumps out with their parachute, and receives no consequences. Execs don't think about long time horizons. Ever.
  - robertlagrant 2y ago
    This seems a pointless conversation. You're describing a stereotype in your head. That's fine, but it's not very useful outside of your head. Do you think companies are all firing people all the time and being destroyed in 2, say, years in real life? How have companies lasted more than 2 years? Or do you think no company is more than 2 years old?
    - yareal 2y ago
      Median tenure of large cap companies is like 5 years. Those CEOs are financially incentivized to raise stock value. It's not hard to imagine that many, many executives are motivated to maximize profits even if it hurts the company in the long run. That's not even a matter of opinion. Of course half the CEOs are above the median, which means some do seem to care enough to invest for long term value. In fact, short term gains is basically the reason private equity firms exist - extracting what value can be extracted from a company and then letting it die.

by yareal 2y ago

spacemadness 2y ago

It’s amazing people keep buying into the delusion that any of the people at the helm of these companies have a vested interest in long-term health of the company. What incentive is there with this much money floating around as an executive? You’re already set for life.

robertlagrant 2y ago

Okay, so in this context what does that mean? Are you saying the executives don't need the workers after all?

yareal 2y ago
When the pilot steps away from the controls, the plane doesn't instantly crash, but you do still need a pilot. An exec thinks labor is a pilot, but only thinks about the 3 minutes after the pilot moves away, then declares, "see? No pilot needed!" Then the exec jumps out with their parachute, and receives no consequences. Execs don't think about long time horizons. Ever.
- robertlagrant 2y ago
  This seems a pointless conversation. You're describing a stereotype in your head. That's fine, but it's not very useful outside of your head. Do you think companies are all firing people all the time and being destroyed in 2, say, years in real life? How have companies lasted more than 2 years? Or do you think no company is more than 2 years old?
  - yareal 2y ago
    Median tenure of large cap companies is like 5 years. Those CEOs are financially incentivized to raise stock value. It's not hard to imagine that many, many executives are motivated to maximize profits even if it hurts the company in the long run. That's not even a matter of opinion. Of course half the CEOs are above the median, which means some do seem to care enough to invest for long term value. In fact, short term gains is basically the reason private equity firms exist - extracting what value can be extracted from a company and then letting it die.