alt Hacker NewsQuite often a senior leadership issue because backing stuff up results in $$$ spent, which makes shareholders unhappy. And in the US at least, unhappy shareholders means lawsuits since publicly traded companies are legally bound to return growth in share price or dividends.
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sokoloff • today at 1:41 AM
What?! Publicly traded companies are not “legally bound to return growth in share price or dividends.”
There are plenty of companies who pay no dividends and have not returned growth in share price. They’re still operating and no one’s coming to throw the execs in jail.
On the off chance that there is such a law, please cite it.
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>Quite often a senior leadership issue because backing stuff up results in $$$ spent, which makes shareholders unhappy.
This is true. The latter half of your comment is not. At best they have a duty to shareholders. But your assertion would mean every time a company posted a loss and the price went down the execs would be in legal trouble, which is nonsense.