> He's legally obligated to maximize shareholder value.
Is this actually true? Or just a "institutional wisdom"?
It's false. It's just that it's close to what's actually true, so it's pretty easy to pass it as a fact.
Basically, what a company is required to do is serve the BEST INTERESTS of its shareholders. This might not necessarily be the same as maximising shareholder value.
https://www.nytimes.com/roomfordebate/2015/04/16/what-are-co...
Re:Apple Hides Taiwan Flag in Hong Kong
by laughinghan on Monday October 07, 2019 @03:45PM
(#21185160)
Thanks for the clarification, I hadn't seen that before. Although I don't think the distinction changes the point I made.
"When we work on making our devices accessible by the blind, I don't consider the bloody ROI...
If you want me to do things only for ROI reasons, you should get out of this stock." - Tim Cook
Re:Apple Hides Taiwan Flag in Hong Kong
by jmchuster on Monday October 07, 2019 @03:31PM
(#21185005)
probably more that he's obligated to do so to keep his job
Re:Apple Hides Taiwan Flag in Hong Kong
by reaperducer on Monday October 07, 2019 @03:45PM
(#21185162)
Tim Cook has enough money that he doesn't need to work anymore. It's not like he's a wage ape pounding code in a cubicle all day.
By what fraction do you think Apple's profits would drop if it had to rebuild all of its factories outside of China? By what fraction do you think China's GDP or tax revenue would drop if it kicked Apple out of China?
Even if that situation were reversed, Tim Cook answers to shareholders via a board of directors. He's legally obligated to maximize shareholder value. Who do you think the Chinese officials who want power over Taiwan answer to? What legal obligations of any kind do you think they are under?