Share buybacks masks declining earnings. Disconnect between shareholders and execs. Renumeration committee do not get invited back next year, doesn’t bear the consequences of decision. Loopholes found expression in buybacks.
This Panel will focus on the differing theories on the proper duty of corporations. Do corporations only owe their loyalty to their specific shareholders, and should they be bound to conduct that is judged purely on how much it increases the value of shareholder investments? Or, perhaps due to the sheer size and power of corporations, do they also owe a duty to society as whole. Some argue that Corporations are made up of people with individual ideologies and beliefs, and thus corporations making decisions on political motivations is unavoidable. Others argue that since corporations last much longer than individual lives or careers, that they owe a duty to the long term prospects of the company, over the present day shareholders. The debate rages on and the eventual outcome will have wide-ranging implications for American business, and the national economy as a whole.
Source: Ship of Theseus – Wikipedia
Source: Dysphemism – Wikipedia