There are plenty of established performance management mechanisms to determine individual contributions, so while I wouldn't say that's a complete nonissue, it's not a major problem. The output of the team is more important to the business anyway (as is the case in sports, too).

And if the team produces results on par with the best results being attained anywhere else on the planet, Zuck would likely consider that a success, not a failure. After all, what's motivating him here is that his current team is not producing that level of results. And if he has a small but nonzero chance of pushing ahead of anyone else in the world, that's not an unreasonable thing to make a bet on.

I'd also point out that this sort of situation is common in the executive world, just not in the engineering world. Pretty much every top-tier executive at top-tier companies is making seven or eight figures as table stakes. There's no evidence I'm aware of that this reduces executive or executive team performance. Really, the evidence is the opposite -- companies continue paying more and more to assemble the best executive teams because they find it's actually worth it.

> There are plenty of established performance management mechanisms to determine individual contributions

"Established" != valid, and literally everyone knows that.

The executives you reference are never ICs and are definitionally accountable to the measured performance of their business line. These are not superstar hires the way that AI researchers (or athletes) are. The body in the chair is totally interchangeable so long as the spreadsheet says the right number, and you expect the spreadsheet performance to be only marginally controlled by the particular body in the chair. That's not the case with most of these hires.

I'd say execs getting hired for substantial seven- and eight-figure packages, with performance-based bonuses / equity grants and severance deals, absolutely do have a lot more in common with superstars than with most other professionals. And, just like superstars, they're hired based off public reputation more than anything else (just the sphere of what's "public" is different).

It's false that execs are never ICs. Anyone who's worked in the upper-echelon of corporate America knows that. Not every exec is simply responsible 1:1 for a business line. Many are in transformation or functional roles with very complex responsibilities across many interacting areas. Even when an exec is responsible for a business line in a 1:1 way, they are often only responsible for one aspect of it (e.g., leading one function); sometimes that is true all the way up to the C-suite, with the company having literally only a single exception (e.g., Apple). In those cases, exec performance is not 1:1 tied to the business they are 1:1 attached to. High-performing execs in those roles are routinely "saved" and banked for other roles rather than being laid off / fired in the event their BU doesn't work out. Low-performing execs in those roles are of course very quickly fired / re-orged out.

If execs really were so replaceable and it's just a matter of putting the right number in a spreadsheet, companies wouldn't be paying so much money for them. Your claims do not pass even the most basic sanity check. By all means, work your way up to the level we're talking about here and then report back on what you've learned about it.

Re: performance management and "everyone knowing that", you're right of course -- that's why it's not an interesting point at all. :) I disagree that established techniques are not valid -- they work well and have worked for decades with essentially no major structural issues, scaling up to companies with 200k+ employees.

I did not say their performance is 1:1 with a business line, but great job tearing down that strawman.

I said they are accountable to their business line -- they own a portfolio and are accountable for that portfolio's performance. If the portfolio does badly, it means nearly by definition that the executive is doing badly. Like an athlete, that doesn't mean they're immediately put to the streets, but it also is not ambiguous whether they are performing well or not.

Which also points to why performance management methods are not valid, i.e. a high-sensitivity, high-specificity measure of an individual executive's actual personal performance: there are obviously countless external variables that bear on the outcome of a portfolio. But nonetheless, for the business's purpose, it doesn't matter. Because the real purpose of performance management methods is to have a quasi-objective rationalization for personnel decisions that are actually made elsewhere.

Perhaps you can mention which performance management methods you believe are valid (high-specificity and high-sensitivity measures of an individual's personal performance) in AI R&D?

"Pretty much every top-tier executive at top-tier companies is making seven or eight figures as table stakes". In this group, what percentage are ICs? Sure there are aberrational celebrity hires, of course, but what you are pointing to is the norm, which is not celebrity hires doing IC work.

> If execs really were so replaceable... companies wouldn't be paying so much money for them

High-level executives within the same tier are largely substitutable - any qualified member of this cohort can perform the role adequately. However, this is still a very small group of people ultimately responsible for huge amounts of capital and thus collectively can maintain market power on compensation. The high salaries don't reflect individual differential value. Obviously there are some remarkable executives and they tend to concentrate in remarkable companies, by definition, and also by definition, the vast majority of companies and their executives are totally unremarkable but earn high salaries nonetheless.

Lack of differentiation within a tiny elite circle of candidates does not imply that salaries do not reflect individual differential value broadly. While these people control a large amount of capital, they do not own that capital -- their control is granted due to their talent and can be instantly revoked at any moment. They have no leverage to maintain control of this capital except through their own reputation and credibility. There is no "tenure" for executives -- the "status" of the role must essentially be re-earned constantly over time to maintain it, and those who don't do so are quickly forced out.

The researchers being hired here are just as accountable as the execs we're talking about -- there is a clear outcome that Zuck expects, and if they don't deliver, they will be held accountable. I really, genuinely don't see what's so complicated about this.

Accountability to a business line does not imply that if that business does poorly then every exec accountable to it was doing poorly personally. I'm actually a personal counter-example and I know a number of others too. In fact, I've even seen execs in failing BUs get promoted after the BU was folded into another one. Competent exec talent is hard to find (learning to operate successfully at the exec level of a Fortune 50 company is a very rarefied skill and can't be taught), and companies don't want to lose someone good just because that person was attached to a bad business line for a few months or years.

Something important to understand about the actual exec world is that executives move around within companies constantly -- the idea that an executive is tied to a single business and if something goes wrong there they must have sucked is just not true and it's not how large companies operate generally. When that happens, the company will figure out the correct action for the business line (divest, put into harvest mode, merge into another, etc., etc.), then figure out what to do with the executives. It's an opportunity to get rid of the bad ones and reposition the top ones for higher-impact work. Sometimes you do have to get rid of good people, though, which is true of all layoffs -- but even with execs there's a desire to avoid it (just like you'd ideally want to retain the top engineers of a product line being shuttered).