Eli5: How do CEOs from failing companies bail out with golden parachutes? Where does the money come from?
In: Economics
There are some good answers here. And some are sort of relevant.
CEOs get brought in to cut costs. They start small and then they keep going until there is blowback
If there is enough blowback, they strategically resign or “get canned”. It’s all a show. CEOs are brought on to recoup costs from failing business models. They are paid fall guys.
CEOs aren’t geniuses.
They aren’t experts in the field of the company they get hired by.
They are well connected people that don’t mind being the face of hated decisions.
And they make those decisions until the analysis comes back that their work is done and it is time for the company to look like they care by moving on.
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