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Employees and other shareholders benefit when the value of the company increases. Why is that hard to understand why they'd want to increase profits?
by rlt 5y ago
Employees and other shareholders benefit when the value of the company increases. Why is that hard to understand why they'd want to increase profits?
- grishka 5y agoEmployees get their salaries either way. Shareholders? They do nothing useful for the society and won't be missed. The way I see it, companies literally ruin the world for mostly imperceptible, and mostly abstract, benefit of the very few.
- Ntrails 5y ago> The way I see it, companies literally ruin the world for mostly imperceptible, and mostly abstract, benefit of the very few. How do you build a car without a company? How do you get 100 people to work together? How do you get components, carry out testing, and still keep people "fed and watered"? The only other answer I have ever heard is "the state".
- grishka 5y agoI don't mean "don't earn money at all and go full communism". I mean "stop making active steps towards increasing profits when your income already covers your expenses ten times over". I also meant "for-profit", and probably publicly-traded, companies specifically. A company doesn't have to be of this type. There are privately-owned companies that build products people genuinely love. There also are nonprofits.
- Ntrails 5y agoPrivately owned companies merely enrich their owners. If anything they are more likely to prioritise profits. Large charities accumulate wealth endlessly through active fundraising despite having enough to cover their costs for over a decade. The issue isn't the collective fiction of the "company", it is "humans" and an inherent greed and self centredness (imo)
- grishka 5y agoI must be some wrong type of human then.
- enos_feedler 5y agoIf you think Apple employees are fixated on their salary, you don't know enough Apple employees. It's all about the stock grants that vest over 4 years. When you get enough of those overlapping and the stock has the growth of Apple, the only thing that matters is stock, not salary. The salary pays for your rent, food, shopping, car in the bay area. The stock builds your wealth.
- grishka 5y agoIf the salary pays for literally all your expenses and you also probably have some left for savings, then what's the "wealth" for? As someone who has never owned any stock, I'm genuinely curious.