Re:CEOs are hugely expensive – why not automate them?
by aapppwe on Monday April 26, 2021 @12:34PM
(#26944530)
this is the problem with any leadership position in general, congress, president.... etc
I think the best way to address this is to provide standardize kpi monitoring.
Re:CEOs are hugely expensive – why not automate them?
by mason55 on Monday April 26, 2021 @01:28PM
(#26945272)
When a measure becomes a target, it ceases to be a good measure
Especially for a CEO, who has quite a bit of power to optimize for any measure, it's going to be very hard to craft a measure that gives the results you want and can't be gamed. The most likely outcome is something that's just a worse version of the stock price, because the stock price is just a forward-looking approximation of net income, which is what you'd mostly want to optimize for anyway (ignoring things like B corps).
I might join a business as CEO and it does really well for 5 years because of the previous CEO, I could claim that it is my leadership and ask for my bonus.
On the other hand, maybe I do well but my successor is an idiot and makes the company tank so now I won't get my 10 year bonus because they screwed it all up.
Unless your idea only works for CEOs who are prepared to stay for 10 years? That then brings in the complication of when you need them to leave quietly because they are rubbish but you don't want your shareholders to know!