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269 points rntn | 1 comments | | HN request time: 0s | source
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renegade-otter ◴[] No.41888004[source]
But the shareholders have been taken care of, right? Is the sacred shareholder OKAY?

Never mind that a famed company has been dismantled to pump the stock for a few years (and how long it took is a testament to its former excellence).

https://www.amazon.com/Flying-Blind-Tragedy-Fall-Boeing/dp/0...

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throw4950sh06 ◴[] No.41888008[source]
What do shareholders have to do with it? Why are they so different from shareholders of Microsoft, Apple, Google, Facebook...? Do you really think they are happy now? No-damn-body would trade enormous future profits from one of the biggest opportunities of the future for some measly one-time millions today, in today's dollars. Space industry is going to produce many trillionaires.
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tjpnz ◴[] No.41888028[source]
This is the company which famously asked its engineers to put the shareholders at top of mind when making all of their decisions.
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throw4950sh06 ◴[] No.41888038[source]
So what? That doesn't mean anything. The shareholders didn't say this, the management of the company did.
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mensetmanusman ◴[] No.41888063[source]
The shareholders are supposed to fire management when they are being stupid.
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renegade-otter ◴[] No.41888148[source]
I think the problem is that the shareholders do not care about long-term profits either. They keep the management because the management prioritizes the shareholders and not the company or its customers.

We live in the stupid times. After watching others get rich off of Bitcoin, GameStop, and companies with fantastical valuations, everyone wants it to go the Moon ASAP.

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1. snapplebobapple ◴[] No.41888610{5}[source]
Its not that shareholders dont care, its that ownership isnt concentrated enough in a shareholder that both cares and is competent. I wrote my undergrad econometrics paper on this, it was actually pretty interesting. You inevitably end up with board capture and short term focus unless there is an elon or group of elons with enough shareholder votes to threaten management because uninvolved shareholders tend to listen to the managent and management wants to capture the board so they can vote themselves higher comp which relies on short term performance for the payout, which is much larger for the ceo than longterm returns on existing comp holdings. It has likey gotten much worse since passive blackrock et al etfs gained such large market share because they vote the shares in ways that benefits them which is only loosely correlated with beneffitting the ultimate share owner.