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A CEOs compensation is mostly stock so that doesn't make any sense. But even if that weren't true, the idea that shareholders don't care about long term prospe
by fallingknife 3y ago
A CEOs compensation is mostly stock so that doesn't make any sense. But even if that weren't true, the idea that shareholders don't care about long term prospects or don't mind when the company tanks because they have other investments is one of the most outlandish financial takes I have ever heard.
- autoexec 3y agoWhen shareholders can trade in nanoseconds to exploit random anomalies in stock prices it's harder to imagine them deeply caring about their investments in the long term. Because CEOs don't have the option to jump ship at nearing the speed of light, it's reasonable to conclude that they might just care a bit more.
- fallingknife 3y agoHFTs and day traders inventory accounts for negligible percentage of shares. The vast majority of shares in all publicly traded companies are held by long term investors. Short term holders have no impact on corporate decision making.