Quote:
Originally Posted by Superman
Sadly, that is the Exec's job. To maximize the value of a share of common stock. Pure and simple. Indeed, he has this as a LEGAL responsibility to the stockholders. It is in fact unlawful for him to make a decision based on considerations other than maximizing the value of a share of common stock. Corporations are truly, in both the practical and legals senses, amoral. When I am crowned Emperor, I will immediately remove corporations from the public policy -making process where I believe they have no business, and I will consider eliminating their legal ability to exist as entities apart from their owners.
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Not exactly. His sole responsibility is not to increase the
immediate value of the stock, though that seems to be what a lot of them think. The stock market, which is where the value of the stock is determined, is volatile and irrational. It would be insanity to manage a company by chasing the value of the stock. Executives have a responsibility to manage in the best interest of maintaining the company's fundamental value, and you have to wonder if giving themselves $14 million in compensation is really in the best interest of the company.