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by rurp 1131 days ago
CEOs have a lot of leverage, yes, but how do I know that a particular CEO is making good decisions? If we look at a random CEO who is making XX,000,000/year, can you make an evidence based case that they are providing millions of dollars worth of value over a replacement level manager? I'm genuinely interested to know if there is a meaningful way to demonstrate this, because I have looked and haven't found one.
2 comments

> …but how do I know that a particular CEO is making good decisions?

We used to call that “profit”.

As a measurement over time at how well a business is performing this used to be the standard measurement but it seems to have been supplanted by other measures such as wealth inequity and twitter mob ragefests.

bezos was a shit CEO for two decades and then somehow fell into a bunch of profit out of nowhere!
Apple had 5 failing CEOs in a row before Steve Jobs. Then look what happened.
From an investment standpoint, could you predict Steve Jobs would be successful?
His performance with Pixar - taking it also from near bankruptcy to enormous success.