It will cost them in future earnings… Companies won’t want to work on their platform if these policies are still in place… and many will never want to work with them again since they’ve shown their hand.
The CEOs don’t need to be paid by other companies. All a competing company needs to do, is to convince some company’s board members to hire a CEO with a track record that they know will tank the company… maybe through indirect lobbying, maybe by hinting they want to hire them because it’s “such a valuable CEO”… and bam!
CEO ruins company, then bails on a golden parachute, and you only had to spend whatever it took to mislead the competing board.
(I’ve seen it done to tiny companies with as few as 20 workers, it’s surprisingly easy to convince a board to hire someone who will destroy everything)
It’s good on paper, so long as a critical number of them aren’t bad actors. You kinda got the same problem with US politics at the moment. It works until it doesn’t, like everything else.
Oh, plenty of business “geniuses” make some pretty boneheaded moves, especially when they feel a need to try to produce huge growth after saturating a market, or if their business results somehow fall short of some need (either actually losing money, or some arbitrary self-imposed “goal” not being hit).
Currently there’s an epidemic of businesses making some pretty dubious long term decisions for the sake of trying to prop up numbers amidst a receding market reality. Recessions are, in part, a self-fulfilling prophecy, where whatever impetus exists, it’s exacerbated by every participant screwing things up further.
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It will cost them in future earnings… Companies won’t want to work on their platform if these policies are still in place… and many will never want to work with them again since they’ve shown their hand.
Removed by mod
The CEOs don’t need to be paid by other companies. All a competing company needs to do, is to convince some company’s board members to hire a CEO with a track record that they know will tank the company… maybe through indirect lobbying, maybe by hinting they want to hire them because it’s “such a valuable CEO”… and bam!
CEO ruins company, then bails on a golden parachute, and you only had to spend whatever it took to mislead the competing board.
(I’ve seen it done to tiny companies with as few as 20 workers, it’s surprisingly easy to convince a board to hire someone who will destroy everything)
What’s the point to do this ?
To destroy the competition.
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Technically that’s what a board of directors is for. They are the ones who can axe a CEO and hire another.
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It’s good on paper, so long as a critical number of them aren’t bad actors. You kinda got the same problem with US politics at the moment. It works until it doesn’t, like everything else.
Removed by mod
Oh, plenty of business “geniuses” make some pretty boneheaded moves, especially when they feel a need to try to produce huge growth after saturating a market, or if their business results somehow fall short of some need (either actually losing money, or some arbitrary self-imposed “goal” not being hit).
Currently there’s an epidemic of businesses making some pretty dubious long term decisions for the sake of trying to prop up numbers amidst a receding market reality. Recessions are, in part, a self-fulfilling prophecy, where whatever impetus exists, it’s exacerbated by every participant screwing things up further.