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by chubot
948 days ago
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What I meant is that there are corporate raids of declining/old companies like Sears and K-Mart. Nobody wants to run these companies on their way down, so opportunistic people come along, promise the board the world, cause a lot of chaos, find loopholes to enrich themselves -- then leave the company in a worse state than when they joined. Apple was a declining company when Jobs came back the second time. He also managed to get the ENTIRE board fired, IIRC. He created a new board of his own choosing. So in theory he could have raided the company for its assets, but that's obviously not what happened. By taking $1 salary, he's saying that he intends to build the company's public value in the long term, not just take its remaining cash in the short term. That's not what happens at many declining companies. The new leaders don't always intend to turn the company around. So in those cases I'd say the CEO is stealing from shareholders, and employees are often shareholders. On the other hand, I don't really understand Altman's compensation. I'm not sure I would WANT to work under a CEO that has literally ZERO stake in the company. There has to be more to the story. |
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This is a non-profit not a company. The board values the mission over the stock price of their for-profit subsidiary.
Having a CEO who does not own equity helps make sure that the non-profit mission remains the CEOs top priority. In this case though, perhaps that was not enough.