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> Given that the CEO legally has a Fiduciary duty to the shareholders to protect their best interests No such duty exists. What does is the annual general meet
by SixSigma 10y ago
> Given that the CEO legally has a Fiduciary duty to the shareholders to protect their best interests
No such duty exists. What does is the annual general meeting where shareholders vote on proposals put forward by the board, such as the mission statement and a company vision.
If these state "we aim to remunerate employees on a flat rate equal to the highest current salary" then you can't cry later.
- pjmorris 10y agoI've read, similarly, that the CEO is not bound legally to protect shareholder's best interests ahead of everything else, article linked here [1]. Quoting: "If you review any of the numerous guides prepared for directors of corporations prepared by law firms and other experts, you won’t find a stipulation for them to maximize shareholder value on the list of things they are supposed to do. It’s not a legal requirement. And there is a good reason for that. Directors and officers, broadly speaking, have a duty of care and duty of loyalty to the corporation. From that flow more specific obligations under Federal and state law. But notice: those responsibilities are to the corporation, not to shareholders in particular." [1] http://www.nakedcapitalism.com/2013/10/why-the-maximizing-shareholder-value-theory-of-corporate-governance-is-bogus.html http://www.nakedcapitalism.com/2013/10/why-the-maximizing-sh...