Why do companies not disburse excess profits like this to those that were responsible for creating the value in the first place?
Why do companies not disburse excess profits like this to those that were responsible for creating the value in the first place?
So distributing it to employees, while noble and just (imo) would require shareholders to vote against their own immediate interests.
In practice, there's probably some friction, but you can damn well believe with numbers this large Tim Cook would be sued in a heartbeat if he attempted to implement such a scheme.
The primary market for shares absolutely benefits companies by giving them large amounts of cash now, in return for a claim on future earnings. This can allow a company to create more value than it otherwise would be able to do.
The secondary market is mainly a benefit to shareholders, not companies; but without a liquid secondary market, there would be fewer people willing to invest in the primary market.
Jobs + Woz created the Apple II, investors funded inventories, production, marketing, and everything else.
It's their business and presumably want a return on their money.