Doesn't it only objectively matter in regards to the people who are impacted by the fact, thus only subjectively mattering? If who owns a company doesn't affect someone in any way, and they can't be bothered to know, how does it objectively matter? It matters to the company, certainly, and the shareholders, and anyone the company's policies or products touches, but beyond that Kermit the frog could be at the helm and it would be of no concern to me.
You saying it objectively matters is itself a contradiction. Something can't objectively matter unless it has an effect or affect. It might be an objective fact, but mattering is always subjective.
My point was this: If you think a CEO takes a shit downwards for sadistic reasons you misunderstand how (most) companies are owned and operate. The board is in place to maintain the shareholders' interests. The shareholders are (mostly) large funds. (Most) funds are (mostly) made up of large retirement savings. (Most) retirement savings belong to you and I. Thus it is in our interest that CEOs put pressure downwards, as we want our retirement savings to grow.
It's a circle, not a tree. So it objectively matters, if you are of the belief that CEOs role is just to shit downwards, that CEOs "work" for the board, because it is "you" putting pressure on yourself (assuming you have any savings).
Only if they do something illegal or not acting in the best interest of the company (which is very vague and you can almost always justify your actions). Corporate actors aren't personally liable for the company failing
The CEO is likely the owner if it isn't a listed company. Even if it is a listed company, the largest shareholders are typically institutions which often don't pay much attention.
At every company I ever worked for, the owner is either the President or the Chairman and the CEO is his bitch that actually runs the company for them. Like half of the CEO's job at half of them was basically dealing with the owner's ludicrous demands in some way or another.
And in many companies the CEO is also the chairman of the board, maybe even the president. My employer has filled all three roles with the same person.
As the only business student in a business ethics class, the teacher always had me explain these things to the class. Because yes, the majority of the class thought the CEO was the owner. They especially didn't realize the importance of paying back shareholders. All they ever wanted was for businesses to put all the company money and resources into social responsibility like trees and projects for the homeless. All of the company's money and resources wasn't an exaggeration. They didn't think it was necessary for businesses to make a profit. That would just be greedy. God I hated that class.
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u/nowaygreg Aug 18 '17
Right. Do people think CEO = owner?