It's better to lean on the side of consequences than freedom, given that their incentives are only partly aligned with the shareholders. They'll do stupid M&A,

It's better to lean on the side of consequences than freedom, given that their incentives are only partly aligned with the shareholders. They'll do stupid M&A, plunder money on consultants and make up bullshit all for something to do. Management tends to be more of an autocracy than meritocracy and a good business needs to push against that. If you are lenient and you give them time to figure it out - they just use that leniency on themselves instead of the company.