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Their job is to maximize shareholder value. Which could certainly be accomplished in some cases by forthrightly admitting to wrongdoing. The problem is that alm
by hyperbovine 7y ago
Their job is to maximize shareholder value. Which could certainly be accomplished in some cases by forthrightly admitting to wrongdoing. The problem is that almost invariably this action immediately precedes said CEO deciding to spend more time with his/her family.
- whatshisface 7y agoForthrightly admitting to wrongdoing might impact the lawsuits.
- gamblor956 7y agoTheir job is to maximize shareholder value. This is false. A CEO's job is to run the company. The Board's job is to protect a shareholder's investment, which does not mean maximizing it. The lie that a CEO's job is to maximize shareholder's value didn't become a popular meme until CEOs were suddenly awarded large stock compensation grants during the Reagan era, and is entirely about CEOs maximizing their personal holdings to the detriment of every other shareholder.
- lonelappde 7y agoThis is wrong. CEOs have wide latitude to decide how to maximize value, and how to measure value, but that is still their job. CEOs raiding short term coffers is a different issue.
- sunstone 7y agoOK sure, but over what time frame should shareholder value be maximized? A quarter, a year, several years? The strategies might look quite different.