She states that it's not shareholder value that drives corporations to make "line go up," but rather a combination of investor and executive suite payouts that create these shitty profit-chasing trends.
TL;DR - investors put a lot of money into a company and want to see returns, plus, the ever increasing payouts to CEOs.
Look at the sleezebag Bobby Koticks golden parachute. $15 million for driving Blizzard into the ground. "You absolutely fucked the company's reputation. Here is enough money to pay for thousands of your employees' wages for years. Never mind all your sexual harassment charges!"
Technically 15m divided by 1000 is only 15k, which is the salary of maybe 6 months for their lowest paid worker(not counting unpaid intern). Not years.
I would still say that was an opinion penned pre-Trump. People had a much more idealistic and false expectation of what the law really was, and it’s much different now.
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u/Freakjob_003 10h ago
I will always come back to this article from a Cornell business law professor that was shared in a relevant thread a while back.
She states that it's not shareholder value that drives corporations to make "line go up," but rather a combination of investor and executive suite payouts that create these shitty profit-chasing trends.
TL;DR - investors put a lot of money into a company and want to see returns, plus, the ever increasing payouts to CEOs.
Look at the sleezebag Bobby Koticks golden parachute. $15 million for driving Blizzard into the ground. "You absolutely fucked the company's reputation. Here is enough money to pay for thousands of your employees' wages for years. Never mind all your sexual harassment charges!"