Asset inequality? Duh!

[timelets]

CEOs have huge explicit incentives to increase shareholders value. Long-term, you are out of luck if you are just an employee and not a shareholder.

Comments

[anhinga_anhinga]

Exactly...

In any case, the incentives are to create short-term shareholder gains, basically to create appropriate fluctuations at the appropriate moments.

Pushing it up and then eventually letting it fall often reaches those goals, or making it fall to the floor, so that it can go up from there and earn incentives...

What's interesting is that an executive who had literally run their company into the ground, while collecting associated bonuses, is still perfectly employable as an executive elsewhere. ;-) We need a new Marx to analyze this strange ruling class of senior managers, and its logic ;-)

Of course, no one cares much about long-term consequences in that crowd...

[anhinga_anhinga]

(And all the mergers and acquisitions bonuses, which means that it's good for them to buy companies and to sell off (pieces of) companies, because it all pays great bonuses regardless of whether it makes any sense...

That's what drives a lot of those re-orgs...)