This is not a uniquely Chinese problem - we have the same problem right here in the US...
In Tim Oreilly's book 'WTF? What's the future and why it's up to us' (1), he talks quite a bit about the emergence of the idea of corporations focussing on maximizing shareholder value over actually productivity (true societal/economic value).
It's the same philosophy that drives the standard massively inflated corporate 'leader' comoensation packages - even when some leaders are severely incompetant. This Wash. Post article describes it a bit (2), but Tim pinpoints the origin to a specific conference talk (can't remember who/when exactly, but the shift occured sometime in early 80's). It's why founders/early invvestors can achieve massive payouts by selling a company even when they've never achieved a profit and ultimately fail - because they're paid in 'smart money' vice cash from profits ('dumb money' - how the worker bee's are paid). It's why companies will continue to opt for short-term gains by displacing workforce with automation versus investing in the long term health of a comoany by training their workforce to be more efficient working in conjunction with automation.
Trust me, I believe in large compensation/payouts for talent, but I think that the talent should be measured in true contribution to the health of the economy - which is distinct from the percieved value of a share.
HN: Can we please start focussing on building truely productive companies again?
In Tim Oreilly's book 'WTF? What's the future and why it's up to us' (1), he talks quite a bit about the emergence of the idea of corporations focussing on maximizing shareholder value over actually productivity (true societal/economic value).
It's the same philosophy that drives the standard massively inflated corporate 'leader' comoensation packages - even when some leaders are severely incompetant. This Wash. Post article describes it a bit (2), but Tim pinpoints the origin to a specific conference talk (can't remember who/when exactly, but the shift occured sometime in early 80's). It's why founders/early invvestors can achieve massive payouts by selling a company even when they've never achieved a profit and ultimately fail - because they're paid in 'smart money' vice cash from profits ('dumb money' - how the worker bee's are paid). It's why companies will continue to opt for short-term gains by displacing workforce with automation versus investing in the long term health of a comoany by training their workforce to be more efficient working in conjunction with automation.
Trust me, I believe in large compensation/payouts for talent, but I think that the talent should be measured in true contribution to the health of the economy - which is distinct from the percieved value of a share.
HN: Can we please start focussing on building truely productive companies again?
1. https://www.oreilly.com/tim/wtf-book.html 2. https://www.washingtonpost.com/business/economy/businesses-f...