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A misallocation of power.
by PhilfromCalifornia

Note that the funding/dilutions referred to in the article were the work of CEOs. Now why is that? CEOs are hired by the stockholders through their representatives, the Board of Directors, to manage the business of the company. On the other hand, the sale of all or part of the company itself, or the distribution of profits is properly a function of that Board, not of one of the hired hands. If, to use a more humble example, you owned a candy store and hired some guy to run it, you would be mighty distraught is you entered the store one day to find that the manager had sold your store instead of selling the candy. We need to get our thinking straight about what the legitimate powers and responsibilities of the CEOs (employees) and the Boards (owners and owner's proxies) are. Recommended first steps (in my view, anyway) are to allow only major stockholders to hold positions on the Board of Directors (so their investments are at the same risk as the cohort of stockholders) and to publish to the stockholders a full copy of the employment contract of a potential new CEO for perusal and approval before that CEO is hired. It is long past time for powers to be appropriately assigned.

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