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Don’t grow? Stay the same, maintain the status quo, be happy with what you achieved, get over the need for more more more, etc. The shareholders will get over t
by irrational 5y ago
Don’t grow? Stay the same, maintain the status quo, be happy with what you achieved, get over the need for more more more, etc. The shareholders will get over their disappointment.
- Kalium 5y agoThat's a great plan, provided you can consistently hit profit targets. Meta's had trouble with that one lately.
- irrational 5y agoWell, there will be a period of adjustment as they find their equilibrium.
- MagnumOpus 5y agoThat's of course perfectly fine, but the stock will re-rate to a P/E of 15 - as it has for Facebook - and long time average stock price growth shrinks from 15%+/yr to 5%/yr - which will suddenly halve the compensation of the staff, who suddenly realize that stock- or option-based comp can go down as well as up... (Of course you could then also draw the conclusion that a company in maintenance mode doesn't need 45,000 people earning half a million a pop, but can make do with paying half as much to half as many -- but that might be a bridge too far for a corp that is still on course to earn $60 billion EBITDA a year...)