Isn’t that a prerequisite for enshitification? Publicly-traded companies are required (by law, I think) to maximize profits for their shareholders, even if that means utterly ruining their original product (Reddit, Boeing, etc.), yes? What do you think?

  • smeg@feddit.ukEnglish
    3·
    7 months ago

    Interesting little article

    In other words, it is activist hedge funds and modern executive compensation practices — not corporate law — that drive so many of today’s public companies to myopically focus on short-term earnings; cut back on investment and innovation; mistreat their employees, customers and communities; and indulge in reckless, irresponsible and environmentally destructive behaviors.

    So I guess the publicly-owned model allows the bad shit to happen when the majority of shareholders are get-rich-quick hedge fund types then?