That’s how it works. A CEO of a comany that they’re not the controlling shareholder works for the major shareholders. Most major shareholders’ primary goal is to continually increase the return on their investment. If the CEO doesn’t do that, or another candidate convinces the shareholders she can do more, the CEO is replaced. It doesn’t happen quarterly, it doesn’t happen in every company, but it not happening is more of an exception than the rule. It’s what CEOs are graded on. A recent obvious example of a bunch of those selling their souls is Big Tech going full support for Trump.
E: Been in large Canadian and American corporations for 15 years now. This is the best model I’ve seen that explains what I’ve seen inside. There are all sorts of exceptions and differences in degree but on the whole, it still has the best explanatory and predictive power according to my observations. YMMV
That’s how it works. A CEO of a comany that they’re not the controlling shareholder works for the major shareholders. Most major shareholders’ primary goal is to continually increase the return on their investment. If the CEO doesn’t do that, or another candidate convinces the shareholders she can do more, the CEO is replaced. It doesn’t happen quarterly, it doesn’t happen in every company, but it not happening is more of an exception than the rule. It’s what CEOs are graded on. A recent obvious example of a bunch of those selling their souls is Big Tech going full support for Trump.
E: Been in large Canadian and American corporations for 15 years now. This is the best model I’ve seen that explains what I’ve seen inside. There are all sorts of exceptions and differences in degree but on the whole, it still has the best explanatory and predictive power according to my observations. YMMV