4 ms·
> The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do tha
by tarotuser 4y ago
> The goal of the CEO of a publicly traded company is to make the shareholders money. As much money as possible. If laying people off is the best way to do that, they'll do it.
At what timescale?
Firing the whole company would save a whole lot of money at the detriment of destroying the company.
Or are we looking at just a quarter? There's plenty of terrible choices that will net a whole pile of profit in the quarter. And it's a string of these quarterly choices are what brought Sears, Toys-R-Us, and other vulture capital mediated destruction that a LOT of quarterly gains. And there's also just making terrible business decisions like Netflix updated account rules (Whoop, accidentally posted... sure).
How about a year? If your company has existed that long, you're still trying to fit in and make your niche. But if you've been around for decades, a year is still super short-sighted. Its very hard to gain respect, and very easy to destroy it over night.
5 years? That's the absolute maximum US stock markets look at. Which means nothing past 5y is "calculable". Long term choices aren't a thing.