Jack Welch is dead but if they wanted to try someone he’d be a great person to start with.
> Shareholder value is the dumbest idea in the world.
There is myth about how corporate directors have a legal duty to maximize "shareholder value" and short term corporate profits at the cost of everything else. This is false. No such thing exists in corporate law. While Burwell v. Hobby Lobby is a deplorable decision, there is a rather remarkable sentence in there:
> modern corporate law does not require for-profit corporations to pursue profit at the expense of everything else, and many do not do so.
> Shareholder primacy is a theory
> The doctrine waned in later years
But, isn't it the case that activist investors aren't really using legal means to ensure that same result; they are using other means anyway? And, the net result is the same?
- Chernobyl: great lessons on how to engineer complex systems, the importance of safety culture, the role humans and management olay and how all of this can lead to disaster
- AF 447: lessons on training and HMI design and human factors
- B737 MAX: to be read after Chernobyl, lessons on safety again, mandatory essay to be writen about the parallels between Chernobyl and the B737 MAX
- Bonus reading for the above two points: Fukushima
- B737 MAX 9 and door plugs (once the final repoets are done): lessons on the importance of failure culture and strong quality processes
- Bad Blood, Money Men: Everybody needs a primer in corporate governance, ethics and the red flags that come with it; add the final reporting on the UK postal scandal and FTX