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> Zuckerberg has a fiduciary responsibility to optimize shareholder value Is that true? And if it is true, he controls 60% of the voting power because he owns
by criddell 2mo ago
> Zuckerberg has a fiduciary responsibility to optimize shareholder value
Is that true?
And if it is true, he controls 60% of the voting power because he owns class B shares that get 10 votes each. Do you think he will sue himself if he fails to wring every last dollar out of Meta?
- stephen_g 2mo agoNo, the OP is repeating a common misconception. Corporate law sets out a number of fiduciary duties, including to act in the best interest of the shareholders but “maximising shareholder value” is not one of them. The idea that companies should “maximise shareholder value” is a key ideal of some political/economic ideologies (especially what people describe as ‘neoliberalism’) but it’s not law.
- singleshot_ 2mo agoI think it's just something that Jack Welch at GE said so many times while making so much money that people started to believe it / wanted it to be true. I'd be happy to hear other stories about why this nonsense arose.
- singleshot_ 2mo agoGenerally speaking, there are two fiduciary duties of the officer: do not usurp corporate opportunities and do not act without information. Your second question is not relevant because you do not have to be the majority shareholder to initiate such an action.