Exactly, the bystander effect. But it’s not strictly due to the large size. Other big companies get hacked too. But if they have a stock price then there’s an obvious metric to indicate when the CEO needs to be fired. It’s the dilution of responsibility combined with a lack of measurable accountability that causes the dysfunction.
The problem is that cutting IT and similar functions to the bone is really good for CEOs. It juices the profits in the short/mid term, the stock price goes up because investors just see line go up, money goes in, and the CEO gets plaudits. There's only one figure of merit: stock price. What you measure is what you get.
It's only much later that the wheels fall off and it all goes to hell. The hack isn't a result of the CEOs actions this quarter, it's years and years of cumulative stock price optimisation for which the CEO was rewarded.
And you can't even blame all the investors because many will be diluted and mixed though funds and pensions. Is Muriel to blame because her private pension, which everyone told her is good and responsible financial planning, invested in Co-Operative Group on the back of strong growth and "business optimisation intiatives"? Is she supposed to call up Legal and General and say "look I know 2% of my pension is invested in Co-Op Group Ltd and it's doing well, and yes I'm with you guys because you have good returns, but I'm concerned their supermarket division is outsourcing their IT too much, could you please reduce my returns for the next few years and invest in companies that make less money by doing the IT more correctly?"
