CEOs often receive praise for their companies’ achievements, but recent failures in the tech and finance fields caused by these executives have shown that their personal glorification is often unwarranted. CEOs are considered innovators bringing economic opportunities by many; however, they can destroy their companies with mismanagement or outright fraud.
At the 2023 Dealbook Summit between interviews with Kamala Harris and Bob Iger, there was a disastrous conversation with the richest man in the world Elon Musk. Tech CEO, Musk, engaged in an interview with journalist Andrew Ross Sorkin, addressing concerns about his comments on X, formerly Twitter, that led many advertisers to cut spending on the platform.
Musk is associated with revolutionary companies such as Tesla, PayPal and SpaceX, making significant advancements in electric transportation, online finance and private space exploration while garnering massive acclaim.
However, Musk is not without controversy. His platform, X formerly directed by Musk, is hailed as a “global town hall” by loosening moderation and allowing controversial opinions on the site. This approach can allow for prejudiced and inflammatory statements.
Musk addressed these concerns at the previously mentioned DealBrook Summit.
Musk told Sorkin, “I mean, look, the joke I used to make about old Twitter was it was like giving everyone in the psych ward a megaphone,” Musk said,“So I’m aware that things can get promoted that are negative beyond the sort of circle of somebody simply screaming crazy things in Times Square, which happens all the time.”
Musk’s company Tesla faced criticism for an array of issues, such as Tesla’s self-driving cars. In a 2021 lawsuit, the vehicles were involved
in multiple accidents and allegations of racial discrimination at Tesla facilities.
The digital finance industry recently saw the downfall of Sam Bankman-Fried, once touted as the poster boy of cryptocurrency, now a felon.
Bankman-Fried was the CEO of FTX and Alameda Research, a cryptocurrency exchange and a hedge fund respectively. He was a young rising star even making the Forbes 30 under 30.
It was revealed during Binance’s selling of 529 million dollars of FTT that Bankman-Fried had been mishandling customers’ money and that the SEC was investigating the company. For example in 2022 he transferred 4 billion dollars to Alameda research without disclosing this to insiders or the public.
He faced convictions for wire fraud and stealing money from customers in FTX and investors in his Alameda Research and was found guilty and is awaiting sentencing. In 2023 he made another appearance in Forbes on the 2023 Hall of Shame.
Elizabeth Holmes raised her blood testing company Theranos’ valuation to $2.5 billion by claiming her technology worked with a small blood sample. Holmes was another CEO to make Forbes and even was featured on the Cover.
It came crashing down when the Wall Street Journal questioned Theranos’ claims about their blood sampling in 2015, this caused a falling valuation.
She was later charged with fraud by the SEC in 2018, and in Jan. 2022, convicted and sentenced to 135 months in federal prison.
These CEOs are public figures with massive influence. Musk’s endorsement of the cryptocurrency “Dogecoin” brought it such an influx of value that some claimed Musk had committed market manipulation.
In contrast to the criticism, CEOs like Musk have legions of fans ready to defend his statements and his companies’ actions to great lengths.
These CEOs are vital in the start of tech and finance companies that can drive and lead innovations in their respective fields, so it is obvious why they are praised by so many. However, their negative actions can destroy credibility for their respective field and block innovations that could have been extremely beneficial.
Sorkin best stated this effect in his interview with Musk: “If X is going to become a financial platform where people put their money, where the government gives you money for rockets, people get into the cars, they need to ultimately decide that you are… that you are ultimately a decent and good human being.”
