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Comment by outside1234 | Hacker News Reader

Kudos to Larry for recognizing it was time to do the right thing and remove Tony. In this day and age, that sort of courage is pretty rare.

Do no evil indeed.

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That seems like a low standard for courage. Larry Page is the CEO of Google (Alphabet). He can fire pretty much anyone he wants, including (and especially) the CEO of a company he acquired. Firing an asshole seems like the reasonable thing to do, not courageous.

But let's be real for a moment -- the guy was probably not fired because he's a prick. Who knows the reason, but ultimately Alphabet is a public company that demands results (and returns) from assets (companies) it invests in (acquires). My hunch is that Nest (and/or it's subsidiaries) were not delivering, and the CEO is ultimately responsible.

It probably didn't help that the guy is an asshole, but let's not pretend that Larry Page walked through the Nest offices like a white knight, sensed a "negative energy", interviewed the sad-looking office manager, and determined the CEO was "damaging to company morale" and therefore MUST be replaced.

Page is the CEO of the one of the largest and most important publicly traded companies in the world. He has a legal and fiduciary responsibility to do right by shareholders. If the Nest CEO was putting up numbers, he'd still have a job, period, asshole or saint.

There are plenty of other fire-able offenses that even CEO's aren't immune to. Being an asshole isn't one, but you can't just say that if he was performing well, he'd never be fired.

>>but you can't just say that if he was performing well, he'd never be fired.

In that case (Tony being fired despite performing well), Larry (the firing knight/king) would be an asshole.

If he was performing well in terms of "putting up numbers", but treating his (and Larry's) employees terribly to do it, firing him would still in my opinion be the right move, and would certainly not make Larry an asshole.

And, excuse me for saying that, that's why you're not a CEO of such a large company.

Consider these alternate (admittedly extreme) realities:

A. CEO is an asshole, but manages to bring in $1M/employee in revenue for a company with 500 employees.

B. CEO is a nice guy, but doesn't manage to bring in enough revenue and has to fire 250 of 500 employees.

In reality A, those people who don't think they are paid enough for the abuse, will leave, as they should. In reality B, the choice of who leaves and stays is almost random.

What you say is that firing a reality A CEO is "the right move". The problem is you're extremely likely to get either a reality B CEO, or an asshole with reality B revenue. HP's history since Carly Fiorina would give you a good case study.

So, from almost anyone's perspective, armchair generals excepted, it is NOT the right move.

> The problem is you're extremely likely to get either a reality B CEO, or an asshole with reality B revenue.

You do propose HP as a case study, but why is it "extremely likely" to lead to that negative outcome?

Also, isn't it possible for a "nice guy" CEO to also bring in high revenue?

I don't think "nice" necessarily equates with "ineffective" in a CEO (for some definitions of "nice").

Because, to quote Sturgeon, "90% of everything is crud", and that includes CEO candidates.

Reality C is far more common - CEO is an asshole and clueless about running a profitable business. Because they're too busy and distracted by self-important posturing and/or outright fraud to make good decisions.

Competent assholes are far less common than incompetent assholes.

There's a bizarre myth that being an asshole somehow correlates with business competence.

But that doesn't take any account of the large number of asshole CEOs who are crash-and-burn fuck ups.

There seems to be a common problem that many of us never-will-be-CEOs have.

We don't act like sociopaths and put profits and duties towards boards before people.

Of course. Neither would I (act like a sociopath or ever be CEO of Google or anything 10% of its size).

But we should not be ignoring the reality, which is that many CEOs are sociopaths (as are many successful politicians). Larry Paige is not, as far as I can tell, a sociopath, but because he does actually have to report to shareholders, he is unlikely to fire someone like Tony Fadell for mistreating his employees as long as he delivers. Fadell didn't, and that's why he's out -- not because of how he treated his employees.

Obviously I'm not a CEO of a Google-scale company. I am a CEO of a small software company, fwiw. But it doesn't really matter. You may be right that choosing not to allow employees to be treated like garbage would be a poor financial decision in some cases. I would still classify it as the right decision, but I can see there being an argument there. That said, there would be many, many highly qualified applicants to a position like CEO of Nest, and it would surprise me if it wasn't possible to find someone who was both a) at least as competent as the outgoing CEO, and b) not abusive to employees. In that case, it would also be a (potentially huge) financially beneficial move as well.

Edit: oh, and to my original point - in no scenario I can think of would firing someone for abusing their employees or co-workers make one an "asshole".

I agree. Sadly these days, performing well is almost invariably defined in terms of "putting up numbers". The issue of treatment of employees comes far later (and far meeker) than the issue of making profit for the shareholders.

I swung by a wrong address the other day and it turned out to be a Nest office. It was shut down and completely empty, door locked and nobody inside. (I was hoping someone there might direct me to the place I was looking for). It was a sizable office building. Probably not their main office, but I'm sure it housed a bunch of people at one point.

Nest actually recently moved....there are about 6 new buildings over two campuses, all in use.

i was there when Marwan was at Motorola Mobility(Home). He is no leader. He never tried to understand any product or road map. He had no vision. His monthly townhall had generic corporate BS filled presentations with no real meaning. He was there for one purpose and one purpose only, to sell the division. He was Larry's go to guy to get rid of things.

Looking from far away and from previous experience, it seems like Google has decided move into a different direction. They want to get rid of NEST.

If anyone is expecting Marwan to be the leader and build NEST business, then you couldn't be further from the truth.

Interesting. I wouldn't be surprised if they want to get rid of nest given the recent negative publicity from the former CEO all the way down to the product causing google employees to post negative reviews and update policies causing backlash.

This is one of their big AI-driven products. I would be surprised if this is part of a larger AI draw down -- that deep learning wasn't up for this type of task. I would also be a little surprised that they would get rid of an "AI enhanced" product given their recent push towards AI.

Arguably, the time to do the right thing was years ago, when Tony was abusing his employees and Nest was making no money other than what Dropcam was making (meaning that buying Dropcam instead of Nest would have made vastly more sense).

I wrote https://news.ycombinator.com/item?id=11425718

Yes, but hindsight is 20/20. The only decisions you can make are the ones in front of you - and Larry made the right one here.

This may have been impossible depending on his contract. It's worth pointing out this is two years and three months after nest was acquired.

Companies don't usually buy early stage companies based on their current revenue (which was a drop in the bucket compared to Google's total revenue), but the long term vision and leadership team. Regardless of what eventually happened, at the time Google purchased Nest, Tony was a seasoned executive who had lead a large division and many highly successful products at Apple.

Are there any solid indicators that Fadell was asked to leave? He'll still be working with Alphabet.

Nobody knows what actually happened here, and even if he was asked to leave it's very strange to call that "courage". I don't even know what the last sentence is supposed to mean.

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