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A large portion of the CEO’s wealth is almost certainly tied up in company equity, and this is true for the shareholders by definition. Anyway, it’s not about t
by kevinventullo 3y ago
A large portion of the CEO’s wealth is almost certainly tied up in company equity, and this is true for the shareholders by definition. Anyway, it’s not about teaching them anything, it’s about influencing the risk/reward calculus of other companies that are considering skipping steps and releasing unsafe products.
- themitigating 3y agoI disagree about influencing the risk reward calculation because the punishment is supposed to be a deterrent. If it's just a fine then the money is like fee to do something and remember that it's not always caught. Imagine if the punishment for murder was $1 million dollars and only if I'm caught.
- kevinventullo 3y agoIf the fine is so large it bankrupts the company, I feel optimistic about its effectiveness as a deterrent.