3 ms·
It's about the specific actions, such as executive incentives and altering stock structure based in the ideology of "maximizing shareholder value." The "ideolog
by enkid 5y ago
It's about the specific actions, such as executive incentives and altering stock structure based in the ideology of "maximizing shareholder value." The "ideology" should lead to some specific actions based on the logic of what you are trying to maximize (mostly stock price), but they actions don't work, so we have to look for some other "ideology" that operates better.
- marcosdumay 5y agoIf the ideology leads to actions that harm its own goals, that's because you are acting based on a wrong theory. You can try to proxy it over the goals of another ideology, and since your first theory was wrong, it may get you better results, but changing your ideology to improve its goals isn't a thing. But anyway, improving your theory normally leads to better results on practice. Notice that I'm not saying it's a good ideology. Personally, I highly disagree with it, but the article is misrepresenting the problem it talks about.