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This case shows how simplistic it is to measure an executive's success by stock price alone. Instead of competitiveness and productivity seeking, we get pump a
by jazzyk 10y ago
This case shows how simplistic it is to measure an executive's success by stock price alone.
Instead of competitiveness and productivity seeking, we get pump and dump:
- pump the stock price up (workforce reductions, stock buybacks, mergers and acquisitions)
- cash out
- let the company crash and burn.
Rinse and repeat.
- nkassis 10y agoIt's like the business equivalent of forest fires. How dead wood/companies and sick companies/trees get cleared off to make room for new younger ones.