The personal incentives for leadership does not align with long term well being of the company.
Executive compensation is derived from quarterly or yearly metrics, if it loses the company influence and success long term, so be it. The board choose those incentives because it served their goals, and likely because it’s what shareholders have asked for, perhaps because the shareholders are largely similar institutions with similar incentive structures.
Ultimately they answer to pension funds and other such retirement focused clients, IE those who will not be here long enough to suffer from the consequences 10 or 20 years out. Or at least where the predominance of the clientele are such.
I would hope that any competent person can see that this can not end well.
Google must know that they are not a monopoly in search.
The personal incentives for leadership does not align with long term well being of the company.
Executive compensation is derived from quarterly or yearly metrics, if it loses the company influence and success long term, so be it. The board choose those incentives because it served their goals, and likely because it’s what shareholders have asked for, perhaps because the shareholders are largely similar institutions with similar incentive structures.
Ultimately they answer to pension funds and other such retirement focused clients, IE those who will not be here long enough to suffer from the consequences 10 or 20 years out. Or at least where the predominance of the clientele are such.