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Wow, that is the shadiest backchannel reference methodology that I've ever heard. If I was the candidate and I heard that story, I'd reject the job without delay. Manipulating people I respect is an astonishingly poor way to establish a relationship.

I can't believe the CEO thought this was a good idea.

Well, sadly I can. There are a lot of firms that succeed in spite of their management, not because of them.

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That is your opinion. However everyone involved in the actual story thought that this was clever of the CEO and respected him for it. It may help that all had managed enough people to understand that manipulation is often necessary. (See, for example, the standard strategy for delivering criticism in a way that will be heard - aka a "shit sandwich".)

The CEO needed an honest answer to a question which people usually lie about, and got it.

For more on this topic I highly recommend reading Machiavelli's The Prince. The advice is both horrifying and effective. Figuring out why it works can be very enlightening.

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