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Shareholders > Board of Directors > C-Suite ( CEO, CTO, CFO, etc ) Shareholders select the board members. The board members determine the overall plan and dire
by qubax 8y ago
Shareholders > Board of Directors > C-Suite ( CEO, CTO, CFO, etc )
Shareholders select the board members. The board members determine the overall plan and direction of the company. The C-Suite ( CEO, CTO, CFO, etc ) execute the plan of and follow the directions of the board.
If the board members want to make drastic changes, they can ask the shareholders to vote on it. If the shareholders don't like certain board members or the changes or direction of the company, then can vote to remove board members and put in members they want.
https://www.investopedia.com/ask/answers/040315/what-can-shareholders-vote.asp https://www.investopedia.com/ask/answers/040315/what-can-sha...
Normally, the CEOs do what the board wants and the board have a fiduciary duty to make money for the shareholders. So unless we have a rogue CEO going against the wishes of the board or shareholders, it's highly likely that most of the shareholders will support google's ambitions in china.
Do you think shareholders would have voted for Apple to leave china and leave tens of billions in revenue and profits on the table?
If anything, shareholders are probably asking google's board why google isn't doing business in china already.
- _nalply 8y agoAdding to this marvelous answer: Shareholders > Board of Directors > C-Suite ( CEO, CTO, CFO, etc ) > Management > Employees
- adtac 8y ago... and of course, at the very end, users :)
- simion314 8y agoAre google actions transparent to the Shareholders? As you explained they elect the board they do not vote on do we do this imoral thing or not. I imagine some could consider that the short profits will not be good enough if the downside is the Google image getting even worse and long terms profits will fall.
- kryptiskt 8y agoAlphabet has different share classes, and Page, Brin and Schmidt can outvote the rest of the shareholders. That has been motivated by the need to avoid this kind of thing. Also, fiduciary duty doesn't mean that the CEO has a duty to bring in the profits. It means that he shouldn't dip in the till.