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You have a pretty one-dimensional view of a company's goal. Well, many have, especially the higher-ups in the US, of course, making those vision statements more
by tgv 4y ago
You have a pretty one-dimensional view of a company's goal. Well, many have, especially the higher-ups in the US, of course, making those vision statements more of a joke than they ever were. But for some, companies have a responsibility towards their employees, customers and environment as well.
In your hyper-financialized viewpoint, the CEO's job should be to make as much money for him/herself as possible.
- andsoitis 4y ago> In your hyper-financialized viewpoint, the CEO's job should be to make as much money for him/herself as possible. No, the CEO is meant to optimize not for themselves, but for the owners of the company. If the CEO didn't do that, the board should fire them.
- willcipriano 4y agoBut what if the board are optimizing for themselves as well?
- andsoitis 4y agoThen the board is breaking their fiduciary duty and the shareholders will sue them into oblivion.
- willcipriano 4y agoHow would you prove it? "We thought that these stock buybacks we put on the company credit card were for the good of the shareholders long term, it's a coinsidance that it happened to increase our compensation as well, sorry it didn't work out as we thought."
- andsoitis 4y agoIf you're curious to learn more then instead of debating in the abstract, it is worth learning more about: a) how board members are compensated b) what type of people are appointed to boards A good start is https://www.investopedia.com/articles/wealth-management/040416/retired-execs-what-do-corporate-boards-pay.asp https://www.investopedia.com/articles/wealth-management/0404...