Comment by datakan

In fairness, I don't think stealing $20 makes the local news these days, unless you live in a town of 300 people. There's a lot of antisocial behavior that goes unreported.

But moreover: I guess there's a presumption, whether fair or not, that well-paid executives overseen by wealthy boards of directors are pre-vetted and act in good faith, whether or not those actions pan out and make money; versus robbery or violent crime that people recoil from, that assumption of good faith isn't there, because it's self-evident to ordinary people that there is no justification for such actions.

> Steal 20$ out of a cash register and make the local news. Waste a billion dollars at a corp and make insane decisions and ride out on a golden parachute. Its a fucked up world.

I think if we are just looking at the media:

Most journalists wouldn't consider some nobody stealing $20 to be newsworthy in itself.

Most corporate scandals receive extensive media coverage. Even a CEO who was merely incompetent instead of corrupt, is still likely to get some bad press.

Now, you are completely right that the non-media consequences are very different – significant chance of criminal record (although in many jurisdictions, there are mechanisms which first-time offenders on minor charges can use to escape getting one) vs a multi-million dollar severance payment.

The issue with "golden parachutes" – if someone's employment contract creates an entitlement to a severance payment (and in some jurisdictions employment law creates one even if the contract itself doesn't) – then you generally have to pay them unless you terminate for "misconduct" (often even "serious misconduct"). The problem with terminating for "misconduct", is it creates a big incentive for the terminated employee to sue to try to get the severance payment they'd otherwise receive, and the larger the payment, the bigger the motivation – which creates an expensive legal and PR headache. The PR issue is especially acute for senior executives–a junior employee suing over a severance dispute will get a lot less media coverage than a former CEO doing it. So, unless the conduct was extremely egregious, there is a strong incentive for the employer/board to just pay the severance out and make the legal and PR headache go away.

You are comparing robbery with ineptitude. They are two different things. If your ineptitude makes a 20$ loss you may not be fired as well. Billion dollars wasted at corp still is not billion dollars at the exec pockets (that would be theft and he would be facing charges). That the exec pockets millions regardles of the losses incurred by corp, even when it sounds awful to you or to me, is a problem between the corp and the exec.

So you would prefer a media circus and investor scrutiny when your employer's executives are fired for failures or misconduct? This is likely to cause the price of the shares to drop, including any ESPP and stock grants you and your coworkers have vested. Is the satisfaction of seeing an executive dragged through the mud worth losing a chunk of your net worth to you, no matter how much the exec deserves it? I'd rather keep the money, personally.

> Steal 20$ out of a cash register and make the local news. Waste a billion dollars at a corp and make insane decisions and ride out on a golden parachute.

Getting pushed out of a position is very career damaging at the executive level. Those golden parachutes are pretty rare, too. Most of the executives I know from companies you haven't heard of (and some that you maybe have) who were pushed out took a huge hit to their careers after that. The best play is to start calling up executive recruiters and try to get any job as soon as possible once the writing is on the wall that you're being fired.

And come on, stealing $20 doesn't register these days.

Ah, but they take the big risks, you see. Someone has to do it.