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Old 26th Nov 2019, 05:29
  #74 (permalink)  
fdr
 
Join Date: Jun 2001
Location: 3rd Rock, #29B
Posts: 789
The CEO balances the needs of the operation with the requirements of the investors. Modern business has a view towards a very short horizon, which is why managers are given incentives towards short term outcomes, that is the consequence of the investors ADHD event horizon. Around the beginning of the year, the manufacturer had a pretty fair understanding of the issues involved, but determined in the manner that we have grown accustomed to, to emphasise the frailties of the human side of the operation. Even post the second accident, the response was biased towards the human causation in operations rather than design and certification issues. The CEO was following tried and proven responses of corporations with a myopic eye on shareholder value. Recognising, admitting and rectifying the underlying issue is a big step for the CEO but that is what he gets paid the big money to do, and what he ultimately needs to do for the preservation of shareholder value beyond the end of the days news cycle. The response to date may be disappointing, but hardly unusual.
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