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No, 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 b
by stephen_g 2mo ago
No, 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.