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Yes. The revenue is used somehow. The board decides how. And shareholders elect board members. Thus, if growth stalled, but there was excess revenue, the boar
by didibus 9y ago
Yes.
The revenue is used somehow. The board decides how. And shareholders elect board members.
Thus, if growth stalled, but there was excess revenue, the board would need to decide where it goes. It could be used to help growth revive, by using it to invest in future prospects, it could choose to use it towards employee compensations, maybe if it believes its required to retain talent, or it could choose to give it to shareholders as dividend.
If the board does make decisions the shareholders don't like, they can eventually be booted out and replaced by a new one.