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"Considering how this would decimate the market and cause large amounts of frivolous lawsuits," Why would it decimate the market? This just sounds like fearmon
by maxxxxx 8y ago
"Considering how this would decimate the market and cause large amounts of frivolous lawsuits,"
Why would it decimate the market? This just sounds like fearmongering.
- dahdum 8y agoStocks are valued primarily on future earnings potential. This Act would significantly dilute the shareholder control by mandating 40% employee elected directors, and mandating they consider the interests of employees, customers, and communities in all decisions. Imagine you have a factory in the Midwest hemorrhaging cash (or even just break even) but other profitable locations. Right now, you'd most likely shut it down and consolidate, move, or outsource that work. Your ability to do so is impeded under this act, by employee elected directors and/or activist investors. The result is less profit potential. Knowing that every company has to make these type of decisions (including benefits), their earning potential is reduced, and their valuations will tumble due to it.
- maxxxxx 8y agoConsidering that employees also have an interest in the viability of a company I am not sure about this.