4 ms·
That’s not true. Theoretical maximum shareholder value would be achieved by firing all employees and selling the company for scraps, yet we don’t see that happe
by darth_avocado 11mo ago
That’s not true. Theoretical maximum shareholder value would be achieved by firing all employees and selling the company for scraps, yet we don’t see that happening. Fiduciary duty doesn’t mean you are required to squeeze profits above all else.
- treyd 11mo agoIt would be easy to argue that would usually not maximize value in the long run, which is why they don't do that. However, some PE firms have been successfully doing similar practices.