Time and again, we see CEOs and similar executives make horrible decisions that massively damage a company both financially and in terms of reputation and the perpetrator is forced to resign, yet receives so much money as a going away present you’d think they’re being rewarded for their fuck up. Why??

  • derf82@lemmy.world
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    1 year ago

    Because the people that set compensation is the board of directors, and they are composed of other executives. They want to set the precedent for themselves.

    • AttackBunny@kbin.social
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      1 year ago

      Also, they are all generally good friends, and want to make sure they keep the wealth “where it belongs”

  • annegreen@sh.itjust.works
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    1 year ago

    Not always, but often, making unpopular changes is precisely what the executive is being paid to do. Their job is to implement these changes, make sure that they are the one everyone gets upset with, and then take that anger with them when they leave.

  • Cobrachicken@lemmy.world
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    1 year ago

    To make them go away before doing more damage although their contract is still valid for some years. Same with a messie as tenant, you essentially bribe them to go before they damage the flat even more.

  • yarr@lemmy.fmhy.ml
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    1 year ago

    Because there are also CEOs and similar executives that do NOT fuck up and make billions for their companies. Big risk, but big reward.

  • IowaMan@lemmy.world
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    1 year ago

    Another similar question: why has executive pay skyrocketed when it’s exactly opposing to (most) companies best interests? Also, you could merely hire a qualified candidate from within the company who is already familiar with how things work and pay them still six figures, but not millions or billions. It seems kind of insane that one person is “worth” that much to a board.

    • sadreality@kbin.social
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      1 year ago

      When board is trying to corruption since guy is no good… Outside guy of their picking will do their bidding though

  • awhtd@lemmy.world
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    1 year ago

    Essentially, there aren’t a lot of candidates for roles like “CEO” at really large companies, so they want to attract the best candidate from a limited pool. Those people get to ask for whatever crazy thing they want if the board really wants them, and golden parachutes aren’t illegal, so why not?