If you breach fiduciary duty the best thing you can hope for is to be fired. Executives have been criminally charged for it as well though. And while it has to be an intentional act of malfeasance, that gets pretty blurry when the shareholders hire thousand dollar an hour lawyers to come after you.
So while yes, the root cause is greed, the system itself is setup to feed that.
Absolutely, but fiduciary responsibility, has never and was never intended to mean absolutely maximizing profits and especially at the long term expense.
That was a twisted idea that was put forward in the late 70s early 80s as a means to justify destroying companies for short term gain.
Just to be clear, there’s no actual law requiring that. It’s just an excuse they use to be greedy.
If you breach fiduciary duty the best thing you can hope for is to be fired. Executives have been criminally charged for it as well though. And while it has to be an intentional act of malfeasance, that gets pretty blurry when the shareholders hire thousand dollar an hour lawyers to come after you.
So while yes, the root cause is greed, the system itself is setup to feed that.
Removed by mod
Absolutely, but fiduciary responsibility, has never and was never intended to mean absolutely maximizing profits and especially at the long term expense.
That was a twisted idea that was put forward in the late 70s early 80s as a means to justify destroying companies for short term gain.
Removed by mod