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View Diary: Who wouldn't want a $58 million severance package? (139 comments)

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  •  Companies don't recruit top (2+ / 0-)
    Recommended by:
    VClib, Sparhawk

    management talent, guaranteeing them long-term contracts and millions of dollars, unless the company thinks that they will benefit from the relationship. And just as sports teams often overestimate the future value of athletes, companies often overestimate the value of managers. But when they hire them, they give them tons of money because they believe that they are worth every penny. Businesses are greedy.

    •  I have direct examples to the contrary... (8+ / 0-)

      ...which I can share privately, but not here.

      Executive hiring has always been 50% talent and 50% CYA. There used to be an adage: "You can't go wrong with IBM." Often executive hires must be made quickly, to fill a chair, and there quite simply is no reliable way to assess the value of a c-level hire. A COO for example. A lot of the job of a COO is to make sure that the company's operation can support its strategy and its growth plan. The value of an executive like that is in not failing; any innovating happens at the margins. If you have the choice between delivering a candidate to the board of directors who kicked ass and changed the game at a mid-market company they've never heard of as a VP, or a guy who stuck his finger in the dike at (say) Yahoo -- who are you going to pick?

      Conventional wisdom says you pick the middling guy with the big title from the marquee brand 100 times out of 100. I'm not saying it's smart, but it's The Way Things Are Done. It's rarely if ever a calculation.

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