How Did THIS Guy Get in Charge?

Ever worked for an idiot as a boss? Notable billionaire Carl Icahn, who is a corporate raider, shareholder activist, or value-oriented investor, depending on who you ask, has a theory on how that person managed to score the corner office.

It's kind of a reverse Darwin's Theory. The survival of the dumbest, if you will. And the famous investor has this theory to thank for his multi-billion dollar net worth.

Icahn has shared it before, but it's worth repeating, which he did this afternoon at the World Business Forum in New York. He did so reluctantly, adding, "This might not be my friendliest crowd." The conference organizers claim there were 750 C.E.O.s among the 5,000-person crowd.

The theory goes like this:

Many college kids seek refuge in their fraternities or clubs (when Icahn tells it, "sorority" is conspicuously omitted) for a friendly face. Without fail, the president of the club, who never seems to open a book, is there to cheer them up. He's a nice and friendly guy, the kind of guy you want around to make you feel better with a beer or a game of pool.

Not surprisingly, that guy goes into business. He's never the smartest guy in the room, but he's likable and he's a survivor. He moves up the corporate ladder, without a single original idea that might make his boss feel threatened by his potential.

Eventually, he gets to be the #2 guy at the company. He's a little dumber than the C.E.O., but the board likes him, so he eventually gets to be C.E.O.

Of course, he assigns a #2 who is a little dumber than he is. "And eventually, we're going to have all morons running our companies," Icahn concluded. "We might not be that far off from that right now."

And that, according to Icahn, is how your incompetent boss got the corner office. His words resonated with at least one attendee who was overheard saying of Icahn's presentation: "That was really great. I wish he was my C.E.O."

by Megan Barnett