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Companies are hyper focused on growth because growth is priced in to their valuation, either by VCs or the public market. Nobody wants to plunk their money into
by vrc 4y ago
Companies are hyper focused on growth because growth is priced in to their valuation, either by VCs or the public market. Nobody wants to plunk their money into something that won’t give them a return, and non-growth businesses have to pay investors in things like dividends or royalties to keep their market value.
In terms of fiduciary responsibility, here’s something I found: https://www.upcounsel.com/board-of-directors-fiduciary-duty https://www.upcounsel.com/board-of-directors-fiduciary-duty
I believe you can be sued for breach of this, and can certainly lose your board seat. I would guess it will devalue the company if a breach were to occur.