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That's not an example of why this is false, it's an example of a conflict of interests. The CEO, for example, needs to push for a compensation package that sha
by andrewmutz 4y ago
That's not an example of why this is false, it's an example of a conflict of interests.
The CEO, for example, needs to push for a compensation package that shareholders see as fair. If not, they can file a derivative lawsuit as a remedy.
- Retric 4y agoYes shareholders can sue, but they such sue the board not the CEO. In well run public company the CEO’s don’t set their own compensation package they negotiate with a board who does. In that negotiation the CEO has zero legal obligations with respect to the company they are in effect an independent entity at the time. Of course this is assuming an independent board, conflicts of interest can still happen.