CEOs Say They Will Stop Maximizing Shareholder Value, Would Be Better If They Stopped Maximizing CEO Compensation
They can do BOTH, they are not mutually exclusive.
“maximizing shareholder profits no longer can be the primary goal of corporations.”
“there is little evidence companies have been maximizing shareholder profits in the last two decades.”
If you believe either of these things I’ve got a bridge in Brooklyn to sell you at a cheap price.
They’ve sure as hell have been using maximizing shareholder profits as the #1 excuse.
euphemism for Sr Management bonus’
Thanks for calling a spade a spade, Dean. Corporate CEOs are at the head of the list of sociopaths that have had such chilling effects on democracy. I believe that CEO compensation should have a fixed maximum amount, that includes the value of stock options, bonuses, etc. Trying to pretend that they are interested in being ‘good’ corporate citizens is laughable.
From a progressive and practical, frugal viewpoint.
Major international companies are issuing low interest rate bonds. Highly rated.
Please remember the real estate bond bundles that were highly rated based on inflated real estate appraisals starting around 2004 and causing the 2008 crash.
The bonds finance share buybacks which help keep the retail market price (pensions & 401K) on the stock exchanges higher than real assets, sales, net profits support.
The companies have had this shell game going by holding back on paying fair wages to their workers.
Although I usually agree with Dean, he is dead wrong on this one.
Skyrocketing CEO pay has been 100% driven by decriminalization (media calls it deregulation) of New Deal regulations during the past 41 years that enable corporations to add shareholder value by nefarious means. CEO pay is indirectly driven by the effect of regulation or lack thereof on their respective business.
US laws have always required that corporations maximize shareholder value or risk being sued by shareholders. Shareholders always win those lawsuits.
Restore reform era and New Deal regulations and add more to adapt to 21st century conditions, or continue to watch CEO pay continue to increase exponentially. It really is that simple.
This propaganda move by corporations and their spokespeople is to try and divert attention from real efforts to amend the U. S. Constitution to take away corporate person-hood, and deny money as speech. Those are two things, desperately needed, that will make it possible to de-fang corporate power, and the power of the wealthy to control our politics and elections. No one person or small group of wealthy individuals or corporations should be able to buy an election or a political office, but it happens all of the time here, and usually with the collusion of the two major political parties. Until those realities change, no real fundamental reform will be possible.
Some posters came close to answering this. If CEO’s are using bailout and tax cut money to buy back their stock, thereby increasing it’s value, is that the same as stopping the maximizing?