You're right about the vendor thing. I have a hunch that changing a job under duress is more stressful than finding a new customer (vendor), and thus employees

You're right about the vendor thing. I have a hunch that changing a job under duress is more stressful than finding a new customer (vendor), and thus employees would be somewhat more inclined to have long term stability, but I certainly can't prove it and I'm not entirely convinced of it. As to the idea that employees will sacrifice shareholder value (of which they have, roughly, zero) in order to feel better about working (revenge feels good, after all), perhaps that is not unexpected. In my scenario, the employees would have another outlet: they could make it clear to the board that they won't tolerate toxic managers. As things stand, a smart board (I would argue) understands this today, but things get awfully muddy in the real world. What the proposal does is broaden the conversation from just considering shareholders to another group of stakeholders.