On the other hand, one of the great revelations for me upon entering the corporate workforce was that this argument doesn't always work. For my first 22 years I had always assumed something along the lines of "If a business decision has a large financial impact, than a corporation with the resources to do so will invest a moderate amount of money in learning enough to make the best possible decision, and if an individual company fails to do so, then its competitors will eat its lunch." On the other hand, what do most companies apparently know about the hiring process? Employee retention? How much worse would the company do if its CEO position paid one-tenth the going rate? From what I can tell, not much is known (and what is known in research isn't followed in practice).
I think the problem there is one of indirection. Accurate dowsing would have an immediate direct impact on oil prospecting results, and thence to profits. The impact of switching CEOs is much more tenuous and subject to a lot individual variation.
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