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And, as you intimated, a CEO has a fiduciary responsibility to the board and stockholders. Doing something that you know is going to have negative consequences
by hvs 14y ago
And, as you intimated, a CEO has a fiduciary responsibility to the board and stockholders. Doing something that you know is going to have negative consequences for your company could be seen as failing to do honor that responsibility.
- _delirium 14y agoThe fiduciary duty is taken pretty broadly and with a long-term perspective, however; courts don't generally second-guess strategic decisions. For example, Musk could plausibly argue that the company's long-term reputation with its target audience depends on being seen as brusquely honest. A court is typically not going to get into trying to determine if that's true or not.