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by ImPostingOnHN
1383 days ago
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If the CEO's personal success is appropriately tied to the company's success, the CEO will be, for the most part, incentivized to do what's best for the company if you don't have a benefit that outweighs the stock dumping like that (in other words, in the CEO's opinion, is the probability of bad stuff happening, multiplied by the downside of it happening, greater than that 30% drop?) then your proposal simply isn't something that should be done that's not to say the CEO hasn't failed by hiring an executive who can't do their job when it requires soft skills and persuasion |
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Let's look at a CEO of a cigarette company in the 1940s. The head of health comes to him with strong evidence that cigarettes cause lung cancer and are slowly killing their users. What would the appropriate action for a CEO be? Or for the head of health? Is the head of health a failure if he can't convince the CEO that they shouldn't be selling cigarettes? I don't think so. Because the head of the company might care more about money than about giving people cancer, and that is his choice to make.
Yeah, maybe the company may hit some rough times later, but if the CEO just hides this report, then the CEO can keep making money, and maybe the shit won't hit the fan until the CEO is already retired or dead.
Instead of stopping the sale of tobacco and shuttering the business, the CEO fires the head of health. Then, the head of health goes to a newspaper as a whistleblower saying that tobacco causes cancer and the CEO knows about it. In what world is the head of health a failure here?