Founders Are Better CEOs

Cool article on CEOs.

Outsider, non-founder CEOs are often overvalued because many corporate boards think the answer to their problems is a superstar CEO with an outsized reputation. This leads them to overpay for people who are good at creating outsized reputations through networking, interviewing, and taking credit for other peoples' achievements--all bad indicators of future success.

Rakesh Khurana has amply shown how this delusion of the charismatic savior creates a dysfunctional market for CEOs, allowing the small number of existing public-company CEOs to demand and receive extravagant compensation. The myth of the generalist CEO is bolstered by the many fawning media portrayals where CEOs say that their key jobs are understanding, hiring, and motivating people--leading board members to believe that you can run a technology company without knowing anything about technology.

Yep. It applies to government as well. I have nothing but contempt for this form of corporate cronyism. These are the worst people in the world after Al Queda and the Taliban.