[HN Gopher] Today's CEOs are essentially carnival barkers (2021)
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       Today's CEOs are essentially carnival barkers (2021)
        
       Author : browserman
       Score  : 67 points
       Date   : 2022-04-29 15:14 UTC (7 hours ago)
        
 (HTM) web link (prospect.org)
 (TXT) w3m dump (prospect.org)
        
       | meany wrote:
       | This is overly hyperbolic. The article references 3 high profile
       | CEOs and states "Todays CEOs" are essentially carnival barkers.
       | The majority of CEOs aren't in tech and don't have anywhere near
       | this life or career trajectory. Also, if you read biography of
       | Edison, Ford, Rockfeller, etc. Many of there behaviors will seem
       | tame. For instance, Edison electrocuted an elephant to make
       | Teslas AC current seem too dangerous compared the DC current he
       | was pushing.
        
         | hhs wrote:
         | Please note, this piece seems to be a review of five books:
         | "The cult of we", "Power play", "Bad blood", "Amazon unbound",
         | and "An ugly truth".
        
         | jshier wrote:
         | Thomas Edison, the person, had nothing to do with the
         | electrocution of Topsy. An employee of one of the various
         | Edison electric companies, long since out of Edison's control,
         | was the one who set that up.
        
         | esotericimpl wrote:
         | https://fortune.com/2022/02/15/musk-brain-chip-company-neura...
        
           | echelon wrote:
           | Your comment was dead, but I vouched for it because I wanted
           | to respond.
           | 
           | Many research protocols that interface with the brains of
           | animals call for euthanasia. Non-invasive study simply isn't
           | adequate, and most of what we know about the brain comes from
           | dissection and vivisection.
           | 
           | In fact, much of animal-based biological research imparts
           | permanent physical trauma on the animals in order to study
           | some disease pathway. They may even be born (or cloned) with
           | immune systems that give them cancer and certain death.
           | 
           | Live animal protocols are designed to be as humane and
           | ethical as possible. Lab researchers are taught how to
           | painlessly euthanize rodents, for instance, and there is a
           | lot of reporting and accountability involved.
           | 
           | Biological research seeks to make our lives better and to put
           | an end to debilitating diseases and disorders, including
           | ultimately death itself.
           | 
           | Another way to look at this is to consider other
           | perspectives: (I mean this in a gentle way and please don't
           | read if you're easily triggered by strong visceral imagery)
           | lions are eating gazelle on the savannah while they are still
           | alive, certain wasp larva eat their hosts from the inside
           | out, orcas play with their food and torture it for hours,
           | primates turn to cannibalism and infanticide, our ancestors
           | had to eat animals and quite possibly cousins, and our sun
           | will eventually boil all of our oceans before the universe
           | itself goes dark.
           | 
           | Nature is brutal when it comes to capturing and transforming
           | energy, and physics even more so. These lab protocols, though
           | they may seem macabre, are seeking to extend our knowledge
           | and end suffering in a humane way.
           | 
           | Edison's stunt was marketing. Elon's company is attempting to
           | fix broken bodies.
        
         | zeruch wrote:
         | "The majority of CEOs aren't in tech and don't have anywhere
         | near this life or career trajectory. "
         | 
         | ...but they are monopolizing the expectations and setting a bar
         | for the perception thereof.
        
       | jjmorrison wrote:
       | This person has clearly never been CEO. There's like a hundred
       | thousand CEOs in the US. Adam Neuman doesn't make a trend.
        
         | fallingfrog wrote:
         | Have you been a CEO?
         | 
         | Edit: come on guys, you're going to criticize the author for
         | not having been a CEO? If you haven't been one either, what's
         | the basis for the criticism? It makes no logical sense.
         | 
         | Edit 2: Regardless of whether the author is right or wrong,
         | "You can't judge because you were never a CEO" is a silly
         | comment to make. Maybe, the author is wrong, but in any case
         | it's not because he's never been a CEO. Almost nobody has been
         | a CEO. Does that mean they are immune from criticism by the
         | rest of us? I just really felt the need to point out the sloppy
         | thinking there. I'm clearly right about this. It seems as
         | though pointing out _obvious logical mistakes_ is now
         | justification for downvotes and taking personal offence?
        
           | pram wrote:
           | I guess the point is it's painting with a wide brush. Not
           | every company needs a charlatan sociopath at the head. The
           | CEO of a lawn care service is probably living a pretty
           | mundane life.
        
             | fallingfrog wrote:
             | OK but I was clearly responding to the comment "The author
             | has never been a CEO." The reasoning is faulty regardless
             | of whether the conclusion is correct.
        
           | jjmorrison wrote:
           | Yes. And yes "You can't judge because you were never a CEO"
           | is a silly comment to make. Take my point as a shorthand for
           | "this person has neither experienced what that job is or
           | bothered learning what it is".
        
       | McLaren_Ferrari wrote:
       | In a world where people work less and less and participate in
       | culture more and more it only makes sense that CEOs become
       | essentially influencers, self-promoters and politicians.
       | 
       | The stock price isn't seen as a KPI anymore, back in the days
       | businessmen would make sure the company would sell quality
       | products and services in the real world and then the stock price
       | going up was just a mere consequence of that.
       | 
       | Nowdays it's all about transforming the company into a mission, a
       | political movement or an outright cult. The stock is seen as a
       | something to sell and if you can do so without any product sold
       | in the real world then it's so much better because as a CEO you
       | managed to efficiently skip a very labor-intensive and capital-
       | intensive process to get to what you really want: Market Cap
       | glory.
       | 
       | It used to be that corporate America had a certain arrogance of
       | being superior to politics, religion and cults. People who
       | resorted to that were singled out as desperate and it was the
       | hint that their company was about to go under.
       | 
       | Nowadays it's the opposite: CEOs and companies which don't
       | shitpost, don't talk politics and don't try to recruit people in
       | their cults are left behind.
       | 
       | It's "fake it till' you make it" on an unprecedented level out
       | there. And the worst offender is the one is worshipped the most
       | on here, irony because game should recognize game.
       | 
       | I think if we coldly examine the moves like in a chess game, he's
       | doing all the right things to be successful in this environment.
       | 
       | As I said when the population consumes culture at an
       | unprecedented rate, you gotta become culture to be relevant. Hate
       | the game, not the player.
        
         | blowski wrote:
         | It might feel like that, but I'm not sure it is in reality.
         | "Good To Great" (Jim Collins) was published in 2001, and
         | commented how publicity-seeking CEOs seemed to do better when
         | the reality was quite different.
         | 
         | I wouldn't be especially surprised to see Elon Musk bankrupt by
         | the end of the decade.
        
           | McLaren_Ferrari wrote:
           | > Good To Great" (Jim Collins) was published in 2001
           | 
           | It was completely different social landscape, people
           | participate in culture at a much higher rate today.
           | 
           | The time people devote to catch up with latest social trends,
           | celebrity news, rivalries etc. is unprecedented.
           | 
           | Say if a culture icon like the Beatles were in their prime
           | today they'd have something like 1.2B instagram followers.
        
         | germinalphrase wrote:
         | "Nowadays it's the opposite: CEOs who don't shitpost, don't
         | talk politics and don't try to recruit people in their cults
         | are left behind"
         | 
         | Having recently read one of those "Top 2021 CEO Compensation"
         | reports for my metro, I think they're doing just fine.
        
         | josh_carterPDX wrote:
         | I completely disagree. I think WeWork and Theranos are causing
         | a ripple effect in all stages of VC right now. No one wants to
         | be the investor of the next catastrophic failure.
         | 
         | Investors are looking under the hood to ensure the company is
         | real, has something that can scale, and that the team can legit
         | do the work.
         | 
         | Anything else is a dated view of how to grow a business. If a
         | CEO wants to be an influencer then run the marketing department
         | and let a real CEO run the company.
        
           | spfzero wrote:
           | I found it pretty remarkable that Theranos was not even
           | mentioned, at least in comparison. Theranos makes the
           | author's case far better than Tesla, though not better than
           | We Work.
        
         | kjksf wrote:
         | Zuckerberg wrote the initial code for Facebook.
         | 
         | Jeff Bezos used to send packages in the early days of Amazon.
         | 
         | Musk is working like a dog, splitting his time between SpaceX
         | and Tesla.
         | 
         | But sure, they are just influencers, self-promoters and
         | politicians.
        
           | throwaway98797 wrote:
           | hatters gonna hate hate hate
           | 
           | folks just can't cope with others doing well
           | 
           | it sucks to not live up to one's own dreams but that's the
           | human condition
        
             | paulryanrogers wrote:
             | Sometimes critics are motivated by legit grievances.
             | Without skeptics grifters will fleece the rich and poor
             | alike.
        
           | McLaren_Ferrari wrote:
           | > Musk is working like a dog, splitting his time between
           | SpaceX and Tesla.
           | 
           | For a guy who is working like a dog , he has plenty of time
           | to tweet nonsense to the masses. And now he owns the asylum.
           | 
           | But I think he's doing all the right things to be successful
           | in this environment.
           | 
           | As I said when the population consumes culture at an
           | unprecedented rate, you gotta become culture to be relevant.
           | Hate the game, not the player.
           | 
           | Paraphrasing Tony Montana:
           | 
           | "In America first you get the attention, then you get the
           | power, then you get the money, then you get the women"
        
         | phoehne wrote:
         | There's a saying that the stock market is a voting machine in
         | the short term and a weighing machine in the long term. I think
         | tech is especially vulnerable to big booms. Most of the stuff
         | in the physical world doesn't pay off as well or with the same
         | margins and multiples. So we get a kind of "get rich quick"
         | mentality that attracts money and grifters.
         | 
         | That being said, I would be surprised if anyone knew the name
         | of the CEO of Walmart which makes about 4.5x the revenue of
         | Amazon. (They are different businesses with different models -
         | so it's an apples to cement blocks comparison). I do think
         | there are totally dodgy CEOs out there that do nothing for a
         | company's stock price except soak up money that should go to
         | shareholders. But they're more managerial nothings that keep
         | the ship afloat.
         | 
         | But to look at a-holes like Bezos, Musk, etc. and think that
         | P&G, Walmart, Target, Boeing, Ford, General Motors, Union
         | Pacific, or any of the S&P500 CEOs are falling over themselves
         | to shitpost is ludicrous.
         | 
         | At the end of the day the CEO is supposed to do three things,
         | publicly. The first is cheerlead for the company - meaning to
         | put the best spin on the news to protect the interests of
         | shareholders. Second is to be the top sales person and go gaga
         | over the company's products. Finally, to make sure that
         | everyone believes the company is run by sane, sober, and
         | focused people who want to make sustainable and real gains in
         | profitability.
        
           | jjmorrison wrote:
           | A CEO is supposed to do 1 thing -> generate more profit $ in
           | the future.
           | 
           | How he/she does it is up to them. It's not up to you or I to
           | judge if they are doing the right things. Just check if they
           | are accomplishing their goal.
        
             | phoehne wrote:
             | I disagree, too many instances of CEOs propping up short
             | term results at the expense of future company health, or
             | even existence. We totally get to judge how they accomplish
             | that goal. Otherwise we wind up with Enron, WorldCom,
             | Washington Mutual, Theranos, AIG, etc. Part of that
             | assessment can come from their public persona and how they
             | present themselves and their company. The problem is that
             | most of the business press and sell-side analysts are
             | willing to gloss over evidence of poor character as good
             | qualities. He's not "willing to commit fraud to post a good
             | quarter," he's "is aggressive and unconventional."
        
           | Apocryphon wrote:
           | It's arguable that Musk is doing the first two things you
           | mentioned with his social media antics, just in an incredibly
           | gonzo way. And perhaps he's achieving the third as well, by
           | cultivating a cult of personality. A CEO doesn't have to make
           | _everyone_ believe that, just enough people.
        
             | phoehne wrote:
             | Sure, until it fails and then it fails spectacularly. I
             | think Musk may be the exception to the general rule. And
             | some founder type CEOs don't go off the rails until they
             | know they're on the way out and don't have to pretend any
             | more. (Not that I think Musk is on his way out any where. I
             | love Musk. All hail Musk.)
             | 
             | But I say those words with a sense that I might be eating
             | them, if something horrible comes out and we all say "gee -
             | should have seen those red flags".
        
               | McLaren_Ferrari wrote:
               | For how I conceive business Musk is a borderline scammer.
               | 
               | But I wholeheartadly agree with the above message.
               | 
               | As you said new elements could come in to make you re-
               | evaluate your admiration
               | 
               | By the same token new elements could come in for me to
               | re-evaluate my stance and if we are indeed at the dawn of
               | an era where CEOs become even more politcians, showmen,
               | pop-culture icons then I'd have no problem tipping my hat
               | to Musk as a pioneer of such new powerful trend.
               | 
               | Similarly I'd also tip my hat if "creative accounting"
               | becomes the norm and also embracing the concept of
               | manifestation and "self-fulfilling prophecy" concerning
               | the stock price which has to be pumped at all costs to
               | make sure that there is always enough air flowing on the
               | wings to keep the company in air.
        
             | McLaren_Ferrari wrote:
             | He'd not be able to do it in say 1985.
             | 
             | It's the unprecendented amount of time that Americans
             | devote to following pop-culture and Musk wants to become
             | pop-culture squared.
             | 
             | China is approaching this thing differently, they make it
             | very clear if you want to become a pop-culture icon you
             | should sing or act. It's not allowing businessmen to become
             | influencers or politicians, nor to put their nose into
             | public health or education.
             | 
             | According to them the roles should be clearly separated, so
             | his style and twitter purchase won't work there (or would
             | work there for different reasons such as China using it as
             | a trojan horse in the AMerican society)
        
       | paulpauper wrote:
       | "get up at 4 am and be rich"
       | 
       | "cut the daily latte habit, cancel your Netflix is the key to
       | prosperity"
       | 
       | Favoritism, luck (which includes having rich and generous
       | parents), and connections plays such a huge, largely uncredited
       | role for success, especially in businesses. Even Bill Gates, as
       | smart as he is, benefited from lots of luck.
       | 
       | The business racket is not much different from the pundit racket.
       | It's the same insularity and being out of tough with reality.
        
         | creaghpatr wrote:
         | Unpopular opinion: becoming the beneficiary of favoritism is a
         | skill that can be cultivated.
        
           | jjmorrison wrote:
           | Racing is a great manifestation of this. Drivers often claim
           | bad luck for being hit by another car. But the best drivers
           | just seem to rarely have bad luck.
           | 
           | Knowing how to keep yourself out of situations where unlucky
           | events may happen is just as important a skill in racing as
           | driving fast.
        
           | lcnPylGDnU4H9OF wrote:
           | As true as that may be it also completely ignores the point
           | that luck might include that an individual's parents are
           | wealthy, as well as generous enough with their wealth to lend
           | - or give - some to said individual.
           | 
           | I think to your point: all the luck in the world won't fix a
           | bad execution. It could still be commendable when a person
           | who gets lucky is able to turn that luck into success.
        
           | zeruch wrote:
           | ...unpopular or unsavory in its implications?
        
             | ithkuil wrote:
             | I guess a lot depends of what are the grounds of
             | favoritism. You know, sometimes just being good at doing
             | stuff and having somebody who has first hand experience of
             | you being good at something and then backs you for
             | something else that they couldn't objectively know you'd be
             | good (compared to tons of other candidates) but, you know,
             | good old gut feeling "I know this person has it" ... well
             | that's technically favoritism, yet it certainly feels quite
             | different from favouring somebody for other reasons like
             | being family or doing some kind of personal favours.
        
         | rektide wrote:
         | Notably Bill Gates's mom got to know the board of IBM & helped
         | connect & land her son's contract for a disk operating
         | system[1] at a time when the DoJ used to have active anti-trust
         | deparments, and was hounding IBM for vertically owning the
         | market.
         | 
         | [1] https://www.biography.com/video/bill-gates-help-from-
         | mom-208...
        
         | sandworm101 wrote:
         | I am up at 4am. At work by 5am most days. I'm not rich. In fact
         | none of my many bosses are ever at the office before 8am.
        
         | jjmorrison wrote:
         | The "credit" one deserves in business success isn't about
         | having created a successful business. It's for having fought
         | and survived the psychological trauma that one goes through to
         | create a successful business.
         | 
         | Not everyone will have the opportunity to slay a dragon. But in
         | my opinion those who have the opportunity, and succeed, are
         | deserving of recognition.
        
         | bsder wrote:
         | > Even Bill Gates, as smart as he is, benefited from lots of
         | luck.
         | 
         | Luck ... read as _rich parents_.
         | 
         | Bill Gates had parents who had connections with extremely
         | important people in multi-national companies.
         | 
         | Bill Gates had access to a computer as a _child_ (via his
         | expensive private academy) back when computers were ferociously
         | expensive.
         | 
         | Bill Gates had parents who could cut a check for $50,000 (in
         | the 1970s) on the whim of their child.
         | 
         | Bill Gates had the ability to drop out of Harvard knowing that
         | _he could always go back or to somewhere else_ because his
         | parents could pay for it.
         | 
         | The child of a steelworker, for example, has no ability to take
         | any of these chances because if they fail there is no recovery.
         | If you get into Harvard, you _will_ go the full four years.
         | Even if your business idea is great, your parents will _not_
         | cut a $50K check as that would pay for your college (and a
         | house and a car and college for your siblings and still have
         | about $25K left over) at the time. Even including the adults
         | around you, none of the people around you have access to those
         | expensive  "computers". And your parents certainly don't have
         | access to the senior executives of US Steel, for example.
         | 
         | The "leeway to fail" is a big deal in allowing you to roll the
         | dice to make "luck".
        
         | melony wrote:
         | Being the scion of a well-connected family in law and banking
         | probably helped him the most.
        
           | aaaaaaaaata wrote:
           | Yes, well-known his mother put him where he needed to be.
        
             | Apocryphon wrote:
             | Sounds like that actually happened, at least in one
             | instance
             | 
             | https://news.ycombinator.com/item?id=31207040
        
             | staunch wrote:
             | No doubt Bill Gates had massive privilege (in the
             | traditional sense the word). He came from an upper class
             | family with particularly powerful connections. The same is
             | true of Mark Zuckerberg and Elon Musk to a possibly lesser
             | extent.
             | 
             | But almost every person with even greater levels of
             | privilege manages to do _so much_ less than them. Which
             | proves that one can 't rightly attribute their great
             | success to privilege alone. If one wants to be correct (and
             | not just feel good) one has to admit that they did some
             | amazing things based in large part on merit.
             | 
             | And that's the rub. Merit alone is often not enough.
             | Privilege alone is often not enough. And luck always plays
             | a role in determining the magnitude of anyone's success.
             | 
             | It takes extraordinary merit to be a John Carmack, Palmer
             | Luckey, Larry Ellison, or Steve Jobs. People who had no
             | privilege (in the traditional sense) and yet their merit
             | (and luck) was so great that they did big things despite
             | the fact.
             | 
             | Many people use the privilege argument to try to dismiss
             | what people like Elon Musk have done. As if they could have
             | done just as well had they been privileged. Envy is clearly
             | clouding their thinking and confusing them. It's totally
             | understandable for people to feel this way but ultimately
             | and obviously incorrect in most cases.
             | 
             | A goal for modern societies should be to give everyone the
             | kinds of opportunities that only the privileged
             | historically had. But this won't prevent some people from
             | doing much more with new opportunities than others. Merit
             | will come to dominate outcomes instead of privilege. This
             | will make the world much richer but won't solve everything.
        
               | melony wrote:
               | You are missing the network effects. Wealth compounds,
               | capital grows, assets beget assets. If an ordinary person
               | is lucky, he or she may win the literal lottery and may
               | never have to work again. If a massively privileged
               | person wins the proverbial lottery, he or she will have
               | enough money to rival the GDP of nations and appear on
               | Forbes magazine. The difference is hardly linear.
        
               | mxkopy wrote:
               | I think this makes sense, but luck is a weird way to put
               | it. I'm sure Bill Gates' family had _plans_ to create
               | generational wealth; at the very least they didn 't
               | ignore the possibility. The question of whether or not
               | Bill is lucky because he wasn't responsible for starting
               | those plans is the same question of if I'm more lucky to
               | have been born in this body or in one 500 years into the
               | future.
        
               | staunch wrote:
               | How do network effects apply here? Do you mean to refer
               | to compounding growth?
               | 
               | It's true that wealth begets wealth. Zuckerberg's kids
               | are billionaires without having to do anything. Bill
               | Gates would've been rich even if he had not started
               | Microsoft, just through inheritance.
               | 
               | But Steve Jobs led the creation of the most valuable
               | company on the planet. There was no blocker to him being
               | richer than Bill Gates or Elon Musk. Larry Ellison is
               | among the richest people on the planet. John Carmack and
               | Palmer Luckey have generational wealth.
               | 
               | Creating a massive company is what makes someone as rich
               | as an Elon Musk or Bill Gates. They had more opportunity
               | to create a massive company than a person from a lower
               | class, but it's got nothing to do with network effects.
               | The main driver of these people's massive fortunes is
               | technology that scales globally.
        
               | wpasc wrote:
               | One of your examples I believe hurts your point: "Whether
               | they win $500 million or $1 million, about 70 percent of
               | lotto winners lose or spend all that money in five years
               | or less."
               | 
               | https://www.rd.com/list/13-things-lottery-
               | winners/#:~:text=W....
        
               | [deleted]
        
       | logicalmonster wrote:
       | Say around 150 years ago, this sort of article might have
       | appeared in some prestigious newspaper of record. Without the
       | technology to link rebuttals or comments to it, maybe 30+ years
       | later when the history books of that original time period were
       | being written and most of the influential people alive during
       | that time period were gone, it would be trivially easy for some
       | historian to interpret a really bad take like this as gospel, get
       | it in front of school-children, and have it taught as truth. They
       | could be well-intentioned, but still easily get things grossly
       | wrong without the ability to see rebuttals to it.
       | 
       | Opinions are always fair to have: everybody has them, and even
       | bad ones. But you have to wonder how much of history is really
       | just garbage takes like this. This to me is a large argument in
       | favor of more sites having blog comments and not censoring
       | opinions, even if 99% of the takes are usually garbage. When the
       | journalists and historians of the future are writing about this
       | time period, it would be horrific if the only sources available
       | were equally garbage takes like this with no commentary available
       | in rebuttal.
        
       | zeruch wrote:
       | ..as a general statement, I think that's being too kind.
        
       | flappyeagle wrote:
        
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