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Ruining a company does not necessarily mean they failed the goals placed in front of them, especially in a cult of "shareholder value maximization" that makes p
by p_l 3y ago
Ruining a company does not necessarily mean they failed the goals placed in front of them, especially in a cult of "shareholder value maximization" that makes people think it's a fiduciary duty to take shareholder value as primary goal.
Multiplying shareholder capital through short-term dismantling of existing businesses while ensuring the shareholder do not have negative effects from it is very much a rewarded operation.
- cubefox 3y agoBut the shareholder value goes down if you have quality and safety issues? Boeing stock did go down.
- p_l 3y agoBut before that, you can squeeze so much shareholder value and be rewarded by the people setting the goals (shareholders choosing the board)
- cubefox 3y agoAgain, a CEO with a long-term career wouldn't want to do that.
- g-b-r 3y agoBoy you need to at least open up to Fox Business xD CEOs are required to maximize shareholder's value, and only some rare funds need the value to stay high for long. The way to have a short CEO career is to let moral concerns interfere with shareholders' returns.