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Counter point. Most of salary is decided based on how much of a loss it would be if you left. A CEO leaving a company can immediately lead to serious consequenc

Counter point. Most of salary is decided based on how much of a loss it would be if you left. A CEO leaving a company can immediately lead to serious consequences whereas an individual employee can leave and no one might bat an eye

anigbrowl 2y ago
True, but that's partly because power is excessively concentrated in executive officers and as a group of people they are (imho) excessively invested in leadership rhetoric that leads them to develop misconceptions about their contribution to the firm's success. Not wholly unlike ships' captains, when they're doing their job job well they're mostly just keeping an eye on things and while the execution is delegated across the organization. When they mess up it's catastrophic. This is not to say I don't think CEOs do any work. They may make major contributions in terms of developing strategic plans, communicating them to staff and inspiring them to carry them out well, negotiating with allies, outmaneuvering competitors, and balancing the conflicting imperatives of operations, finance, security, legal and so on. But they're not compensated for labor so much as given (via negotiation) a commission on profits, revenue, stock price movement or suchlike. Inevitably there are conflicts of interest with shareholders, staff, and customers, and as a class CEOs and other high level executives seem to have tilted the tables more and more in their favor over recent decades.
aziaziazi 2y ago
> A CEO leaving a company can immediacy lead to serous consequences Is it something that has been study or observed? Most company are resilient enough to handle the leaving of an individual, being a Chief or not. The opposite would be a flag for an instable company. Far tangent exemple: Belgium without government.
- _thisdot 2y ago
  I’m looking at this from a casual stock market perspective. If I came to know the CEO of the company is unhappy and planning to leave, surely I expect the stock prices to take a hit. And the recovery will mostly depend on their successor and is altogether an expensive exercise
- s1artibartfast 2y ago
  I dont know, transitions can easily cost many millions of dollars of swirl when our director changes. They only lead 100 people, in a small part of a large company but we spin up and cancel projects with 250 million dollar budgets. Change in leadership and direction is expensive. Bad leadership and direction is expensive too. greenlighting one more/less wasteful project pays for many years of CEO salary.

anigbrowl 2y ago

True, but that's partly because power is excessively concentrated in executive officers and as a group of people they are (imho) excessively invested in leadership rhetoric that leads them to develop misconceptions about their contribution to the firm's success. Not wholly unlike ships' captains, when they're doing their job job well they're mostly just keeping an eye on things and while the execution is delegated across the organization. When they mess up it's catastrophic. This is not to say I don't think CEOs do any work. They may make major contributions in terms of developing strategic plans, communicating them to staff and inspiring them to carry them out well, negotiating with allies, outmaneuvering competitors, and balancing the conflicting imperatives of operations, finance, security, legal and so on. But they're not compensated for labor so much as given (via negotiation) a commission on profits, revenue, stock price movement or suchlike. Inevitably there are conflicts of interest with shareholders, staff, and customers, and as a class CEOs and other high level executives seem to have tilted the tables more and more in their favor over recent decades.

aziaziazi 2y ago

> A CEO leaving a company can immediacy lead to serous consequences Is it something that has been study or observed? Most company are resilient enough to handle the leaving of an individual, being a Chief or not. The opposite would be a flag for an instable company. Far tangent exemple: Belgium without government.

_thisdot 2y ago
I’m looking at this from a casual stock market perspective. If I came to know the CEO of the company is unhappy and planning to leave, surely I expect the stock prices to take a hit. And the recovery will mostly depend on their successor and is altogether an expensive exercise
s1artibartfast 2y ago
I dont know, transitions can easily cost many millions of dollars of swirl when our director changes. They only lead 100 people, in a small part of a large company but we spin up and cancel projects with 250 million dollar budgets. Change in leadership and direction is expensive. Bad leadership and direction is expensive too. greenlighting one more/less wasteful project pays for many years of CEO salary.