Boards are usually filled with ex-CEOs who also thought these dumb bets were good
replyAnd the board is pulling down $300k per year or more for sitting in maybe 11 meetings per year and participating in a “comp committee” where they just review data and recommendations from comp consultants and agree to whatever the consultants tell them. So, why rock the boat?
reply> You don't become a pioneer in your industry by just cargo culting everyone else.
replyYou usually don't become a CEO of a long established company by being a pioneer either though...
You may be able to argue this particular case though, as he is a marketing guy and he was a pioneer in marketing as few others capitalized on social media/YouTube when he did.
But I feel like that's completely unrelated to how adjacent that's to what I'd consider a pioneer in a CEO position. Hence me pushing back a lil
Sometimes you do get the CEO gig for being a pioneer, but then the whole organization thwarts whatever you want to do by repeatedly saying “we don’t do it that way here” and dragging their feet until you get fired.
replyLet’s be honest about how the incentives work at large companies. The CEO probably has a $10m/yr comp package. The EVPs under him are $3m-$5m each. Nobody is really interested in making the company wildly successful, because that would entail lots of risk. Better to just keep everything moving along at the market average, don’t get fired, and collect the package every year. If you’re lucky, you do this for 3-5 years and you collect another $10-$20m termination package when they fire you. Then you hire an executive headhunter to get you the next gig and you repeat it. So, your main goal is to play defense. Don’t do anything risky that would get you fired. Pay McKinsey to bless whatever you want to do and if it blows up, blame them and call Accenture or Deloitte next time. Rotate between management consultants as required. Buy your tech from IBM, because nobody gets fired for buying IBM. Yes, your whole career will be MEH, but you can vacation all the time at your multiple houses in the Hamptons and Italy.
reply