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Imagine the company is closing stores in a month and all the executives and management stop going to work tomorrow. Who is closing the stores? Who is handling e
by mevile 8y ago
Imagine the company is closing stores in a month and all the executives and management stop going to work tomorrow. Who is closing the stores? Who is handling exiting the staff properly? You don't want police coming and putting chains around your store and staff just having nothing but chaos for a month. You'll end up people not showing up to work. The stores might be open or not. You might end up with looting.
You want an orderly exit, and they're incentivizing the management to help achieve this.
Investors and employees could attempt to sue individual executives for mismanagement of a business, but if you want the government to punish business executives for failing at business you're in the wrong economic system.