If Ryan Cohen took a salary in that leauge the bear thesis would still be alive and the turnaround of GameStop might never happen (or be significantly delayed). My executive chairman has other plans 🙌
If Ryan Cohen took a salary in that leauge the bear thesis would still be alive and the turnaround of GameStop might never happen (or be significantly delayed). My executive chairman has other plans 🙌
Why should the shareholders interest even be prioritized. What about customers? Or employees? Or the business itself?
This priority on short term profits for stock price is toxic to functional capitalism.
OK some priority is reasonable, the company needs to make some money to pay for investments.
But I absolutely agree, why are we rewarding companies that are practically doing con jobs on their customers?
emitting stock is only one of many ways to make money for investments. it’s not required.
Why would you buy stock, if they can’t make money for investments?
Issuing new stock is mostly for startups and major changes in the business. Not for the normal progression of a company.
I agree more than I disagree actually, but the nuance I’d add is that I think share price should be much less of a focus than company profitability and dividends, as the whole point of owning stock is in owning the excess profits. Trading firms have made the markets into a casino while low Fed rates have made actual profitability more of a side quest for most publicly traded companies. Look at Rivian, nearly worth a trillion dollars before they even had full production? Ludicrous speculation at the cost of everything is the main course for most traders.
Aside from discussing the urgent need for market reforms to make sure companies trade more closely to their fundamental value, I spend more of my time worrying about customers and workers as well. We have a nation addicted to literal slavery through the 13th amendment, it’s a disgrace. Putting more people in prison is literally in the interest of certain for-profit prison company shareholders. It’s sick.
Saint Milton Friedman (bless him) said that the only societal responsibility of a CEO is to increase the wealth of the company’s shareholders.
You wouldn’t want the CEOs to disobey the sanctified word of Mimil? The shareholders could go broke, and then how would the wealth treacle down? Did you think of this? No, you only think about not starving, you egoistical prole.
Why should a car owners commute be prioritized… what about disabled? Or downtroden? Or the dealership itself?
This priority on personal vehicals for daily use is toxic to functional transport.
Unironically yes. Check out Strong Towns.