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The shareholders are not making these decisions (directly), the Board of Directors is. And who is on the BOD? Why other CEOs who expect their actions to be reci
by pstuart 18y ago
The shareholders are not making these decisions (directly), the Board of Directors is. And who is on the BOD? Why other CEOs who expect their actions to be reciprocated. This is [logrolling](http://en.wikipedia.org/wiki/Logrolling http://en.wikipedia.org/wiki/Logrolling).
The talk about short term profit taking being driven by the market is BS as well. If a company were to take actions that would depress its earning in the short term for the sake of (demonstrable) long term growth and profits, the smart segment of the market would recognize that and respond favorably.
One partial solution: outlaw stock options in publicly traded companies. Use cash bonuses and have the usual Employee Stock Purchase Plan that provides a 15% discount on investing in the company.
- anamax 18y agoThe shareholders are choosing where they put their money. Shareholders could choose to buy stock based on how the CEO is paid but few do.