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I think Ha Joon Chang suggested that managers will likely receive reduced bonus, or in extreme cases fear losing their jobs, if their actions lead to drop in s
by sideshowb 7y ago
I think Ha Joon Chang suggested that managers will likely receive reduced bonus, or in extreme cases fear losing their jobs, if their actions lead to drop in share price?
- kerkeslager 7y agoBut the managers' actions aren't leading to a drop in share price, it's divestors' actions that are leading to the drop in share price, and this would be obvious with any divestment effort large enough to create an effect.
- benj111 7y agoBut managers can stop doing the thing that leads to divestment (or so the theory goes).
- sideshowb 7y agoThe managers bear ultimate responsibility for continuing the actions which investors dislike.
- kerkeslager 7y agoBut divestors aren't investors any more. I really find it hard to believe that someone would be fired for doing fossil fuel company things at a fossil fuel company because of divestment.
- sideshowb 7y agoThe threat is that more existing investors might divest. Some of the fossil fuel companies are putting significant investment into 2nd generation biofuels, I guess because they have the potential to leverage existing infrastructure. But possibly also because they care what divestors think.