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B corps are allowed to prioritize specific values enumerated in their corporate charter, even at the expense financial gains. Regular corporations have a fiduciary duty to their shareholders, which in recent decades has been interpreted as requiring companies to maximize short-term shareholder value


https://www.nolo.com/legal-encyclopedia/fiduciary-responsibi...

There is no fiduciary requirement to put profits above all else. In fact there is no fiduciary duty to make profits, just basically to do what's best for the company. There is no short term time frame listed. If there is a requirement to make profits it's not because it's a responsibility. Shareholders may want it but no one gets punished if a bad decision for the long term success of the company doesn't pan out. There's numberous examples of CEOs that attempted to pivot when it wasn't the most profitable course of events and then receiving a nice severance more than most employees make in a lifetime of work for failing.


It's almost as if the more and more you compensate your c-suite execs with your own shares, the more you would expect to see them chasing short-term profits regardless of the degradation of firm longevity...


Yes this is a common refrain.

You encourage what you measure against

Knowing what to measure against is harder the higher you go up the corporate ladder.

Incentives get skewed towards short term employees and short term rewards. Companies treating their employees as resources has only hurt loyalty. No one starts at a company in the US anymore unless they're average or below workers. The whole idea of companies not being willing to pay existing employees what they would pay a new hire is stupid too. You're willing to pay more for someone you're going to have to train and is a literal risk, versus a known commodity with known output. Generally you pay more for stability on the market not less.




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