Time and again, we see CEOs and similar executives make horrible decisions that massively damage a company both financially and in terms of reputation and the perpetrator is forced to resign, yet receives so much money as a going away present you’d think they’re being rewarded for their fuck up. Why??
Another similar question: why has executive pay skyrocketed when it’s exactly opposing to (most) companies best interests? Also, you could merely hire a qualified candidate from within the company who is already familiar with how things work and pay them still six figures, but not millions or billions. It seems kind of insane that one person is “worth” that much to a board.
When board is trying to corruption since guy is no good… Outside guy of their picking will do their bidding though
The reason a business might not hire a CEO from within is because the CEO needs to represent the interests of the board/shareholders, not necessarily the employees or customers. An existing employee will probably have existing loyalties/disloyalties to different parts/people in the business and not be able to represent the board/shareholders in the way that they want.