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I think you understand more than you think if this statement throws you for a loop: > “Corporations are bound by fiduciary responsibility to maximize profit"

I think you understand more than you think if this statement throws you for a loop: > “Corporations are bound by fiduciary responsibility to maximize profit" This might be the view of some CEOs (maybe it’s the logical conclusion of the Jack Welch school of thought?) but it certainly isn’t the case from a corporate law perspective. Officers have a fiduciary duty of loyalty not to compete against the corporation or steal its opportunities; and officers have the fiduciary duty of care to act in an informed manner, but they certainly do not have a legal responsibility to the shareholders or anyone else to maximize profits.

jpmoral 4y ago
At the time of (my) commenting parent is heavily downvoted. > “Corporations are bound by fiduciary responsibility to maximize profit" This is often repeated on HN and elsewhere. I'm not a corporate lawyer or any sort of lawyer but an Internet search indicates this isn't true. I wish people would comment instead of just downvoting.
- Spooky23 4y ago
  Maximizing shareholder value is a position taken by many that is getting less popular. Value is difficult - Wall St cares about quarterly results, but shareholder value may be better served with a different scope.