> The price of the stocks does not affect company in any way. That would be the case in the ideal world. However, stockholders care a lot about stock prices be

> The price of the stocks does not affect company in any way. That would be the case in the ideal world. However, stockholders care a lot about stock prices being low, and they elect the board, which in turn chooses/advises the CEO (and other executives). When it's the CEO's butt on the line, the company will be reactive to share prices; just to make sure the stockholders are happy. A secondary concern is that low share prices makes a company vulnerable to non-/hostile takeover bids - which again is bad for CEO job security. TL;DR: The tenure of the top echelon (board & executives) of public companies is directly tied to (relative) stock performance due to share voting rights.