As mathattack has correctly pointed out in a comment an hour ago, this is a parable (a made-up story). The huge salary by that day's standards should make that clear. But the unnamed author makes his hiring methods look stupid, because he should be doing a work-sample test[1] before hiring for such an expensive contract. If he doesn't know what the worker will actually do, he shouldn't put so much money on the line.
[1] My FAQ on company hiring procedures as posted earlier on HN:
The effectiveness of various hiring methods has been demonstrated pretty rigorously now. But how many companies now take them into account, neverminding 1924?
I'd probably be more expecting a Belbin or Myers-Briggs questionnaire to be required, than a work-sample test, to have my suitability tested for certain roles, despite the established effectiveness of various methods.
There's a lot of things people should have been doing in 1924, but weren't. I mean, if we're judging by modern standards, allowing women and minorities into senior roles would be one of them.
How, exactly, do you do a work-sample test for a chief sales executive anyway? "Hey, can you run our global sales division for a couple of hours, then we can evaluate if your methods really bring in the sales"?
Edit: to clarify on the work-sample question, in the story, the employee has been expressly hired to teach the existing staff new methods, which they actively recognise that they don't understand. How do you make a meaningful work-sample test for a sales chief that can be interpreted by a naif?
That doesn't tell me how the applicant will manage a department or implement new techniques. It's a test for line sales staff, not departmental managers.
Just out of curiosity, not being a salesman, is a great salesman actually expected to be able to sell anything to anyone?
Bragging aside, I would assume this is one of those cases where a huge portion of the job is differentiating likely and unlikely sales targets, and applying effort accordingly.
[1] My FAQ on company hiring procedures as posted earlier on HN:
https://news.ycombinator.com/item?id=5227923
I'm now doing research to update that FAQ for posting on my personal website, a suggestion other HN readers kindly gave me.