The Cost of Comfort

LIV Golf offered massive guaranteed contracts to top players, bypassing the traditional performance-based pay model. The data shows most defectors saw their major-championship results drop dramatically, with stars like Dustin Johnson and Cameron Smith missing cuts and falling in world rankings.

In contrast, athletes in team sports with similarly huge guaranteed deals-Josh Allen, Steph Curry-continue to perform at elite levels. The key difference is accountability: team members answer to coaches and teammates daily, and their outcomes directly affect others, keeping motivation high.

The same dynamic applies to business and investing. Decades of bull markets have given firms and investors a tailwind that can lull them into complacency. When returns become a foregone conclusion, the incentive to scrutinize risk, reallocate capital, or innovate erodes, leaving portfolios vulnerable to sudden market shifts.

Technical leaders should treat guaranteed outcomes as a warning sign, not a comfort blanket. Build structures that make individuals answerable to peers, set clear performance metrics, and rotate responsibilities so that success or failure impacts the broader team. By embedding accountability, you keep teams sharp and protect the organization from the performance paradox of guaranteed wealth.