this post was submitted on 18 Jan 2025
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I think you may be conflating the executives of a (publicly held) corporation and the corporation itself. Even executives are ultimately still employees. They're trying to maximize profits because that's their job, not because they get to keep the profits. They can be fired by the board of directors (and through it the stockholders) and they will be fired and replaced if the board decides that someone else (either another human or an AI) would do a better job.
I'm ignoring a lot of complications but I think that what I wrote is a good general description.
Idk man, the simple math of CEOs being given bigger and bigger bonuses - seemingly across the corporate board - tells me what you're saying is wrong.
It really depends on the company structure. Oftentimes a company is a subsidiary of another company. The CEOs of those companies are usually employees
Edit: But you are right about the boni
CEOs very commonly serve as board members for their friends’ companies. In many instances they’re the same thing.
The amount that executives get paid (Especially when connected to efficiency levels) says you are dead wrong. They do get to keep the profit. High the profit margins, the higher their bonuses, the higher their salaries when renegotiating.
The board only gets their information from who, exactly? The executives. Who run the business day to day and who actually have more of a vested interest than the board. The board of directors doesn't magically aquire this data. They get it from the executives who are hired with the sole purpose of running that business in the best possible way to maximize profit and revenue for the board.
You wrote a good general description but you completely missed my point.