The more senior you are, the more responsibility you have. Responsibility doesn’t keep office hours. The CEO and other senior executives cannot say to shareholders that they had a bad day, were sick, wanted to spend more time with their family and expect that shareholders won’t look for someone who they perceive can work harder for them.
back
1 comments
You've articulated the problem well: placing shareholder value above all else is at the root of what ails corporate America.
Other values need a seat at the table, not just scraps from the shareholders.
I don’t know what the right balance is, but it is worth noting that institutional investors (incl. pension funds, insurance funds, ETFs, etc.), hold 80% of equity.
So, broadly speaking, if you’re a worker, you very very likely have a stake in companies generally being profitable.
https://www.investopedia.com/articles/financial-theory/11/in...