(March 11, 2016 at 11:52 am)Rhythm Wrote: CEO =/= owner. Forgive me for being unclear by using the terms employer and employee. Those shareholders, in your example, would be the owners...and they assume the risk the CEO is smart enough not to. Probably has something to do with him knowing himself. I'd liken a poor CEO to an employee with his hand in his employers till.
One of the big problems is the whole "stock option" system of rewards. It gives those corporate officers every incentive in the world to manipulate the stock price for their own benefit.