Details, details. All middle-management cares about is whether or not the task is done. And the associated costs of your shitty code are, at least partially, shifted on to your co-workers. This gives you an even better comparative velocity! Bonus season will be good this year.
What's great about "done" is that there are so many interpretations of it.
This is correct in developer's terms, but not necessarily in sales terms. Unless you manage yourself, you may get fired for choosing the first option (overdue with no bugs). Another good reason for working for yourself, I guess.
What!? Has he never read Code Complete? I'd rather be 2 weeks overdue with no bugs than on time with 80 bugs. 80 bugs means I'm really overdue by a month...