Only in fairy tales are emperors told they are naked. The incentives are not there for honesty.

• If a CEO is raving about an overly stupid acquisition, both his internal staff and his outside advisors will come up with whatever projections necessary to justify the "great idea".
• The way the "board of directors" system is set up, makes it ideal for incentivizing people to follow the lead of the #ceo. Talk about misplaced incentives.
• To be fair, dealing with mediocrity is a difficult problem if you're a board member.
• CEOs with provably abysmal track record, are cheered like rockstars.
• "Love your enemies, for they tell you your faults.", Rarely happens.

From my notes on Seeking Wisdom: From Darwin To Munger

#management #techbros #bad-incentives #incentives #ceo