3 ms·
It may seem like it but is actually not. CEO and board members are not legally required* to maximize "shareholder value." That is just a myth. *There are a few
by Pulcinella 9y ago
It may seem like it but is actually not. CEO and board members are not legally required* to maximize "shareholder value." That is just a myth.
*There are a few things they are prohibited to do that are vaguely similar. They can't sell the company for $1 or destroy the value of the company intentionally to screw over shareholders.
- astrange 9y agoThey're privately required to by financial analysts. http://www.latimes.com/business/hiltzik/la-fi-hiltzik-american-airlines-20170428-story.html http://www.latimes.com/business/hiltzik/la-fi-hiltzik-americ... Really, public stock markets were a mistake, weren't they.