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> I thought that CEOs of American companies were legally required to maximize profit. They are not. Management of companies has the fiduciary responsibility to
by unmole 5y ago
> I thought that CEOs of American companies were legally required to maximize profit.
They are not. Management of companies has the fiduciary responsibility to act in the best interests of shareholders. That does not imply a legal requirement to maximize profit.
- R0b0t1 5y agoA judge is also unlikely to assume the randos on a board are better at upholding fiduciary duty than the company executive. The case that created this BS is one where Henry Ford said literally nothing in his defense and lost.
- djbebs 5y agoWhat are yoy talking about? The "randos" on the board are the ones representing the shareholders...
- R0b0t1 5y agoYes, but are they subject matter experts? The CEO is more likely to be an expert than they are, that's why the CEO is the CEO. The board members' only qualification is having money.