Stockholders always want the company to survive, over short term profits. The problem is that stockholder interests are not the same as the custodian interests.
Custodians get paid on the basis of inmediate performance.
Thats the broken link.
Custodians are thus nominating board members that are incentivized by short term decision making. The nomination is based on relationships and based on trust.
And then you get in trouble.
If board members were elected as a sort of election by ultimate stockholders (which include actual employees, in fact) you would see a different board. Therefore different CEO.
Custodians get paid on the basis of inmediate performance.
Thats the broken link.
Custodians are thus nominating board members that are incentivized by short term decision making. The nomination is based on relationships and based on trust.
And then you get in trouble.
If board members were elected as a sort of election by ultimate stockholders (which include actual employees, in fact) you would see a different board. Therefore different CEO.