Imagine you’re the CEO of a publicly traded corporation that is legally required to maximize profits for shareholders. Do you
A) choose an option that will earn less gross profit or
B) choose the option that will earn more?
If you chose “A” because you’re a good person and not a greedy capitalist, congratulations. You’ve just been fired as CEO and the major shareholders just picked a replacement who will choose the second option.
Revenue growth down from 3% to 2% is significant, especially considering that’s an even bigger hit to growth in profits. They want to make their investors happy, they have a perfectly reasonable PR cover to raise their prices by a few dollars a month, so they’ll do it. What part of this is confusing?
They will still have that growth. Just a fraction of a percent less. And they are using that to justify raising their prices.
Imagine you’re the CEO of a publicly traded corporation that is legally required to maximize profits for shareholders. Do you
A) choose an option that will earn less gross profit or
B) choose the option that will earn more?
If you chose “A” because you’re a good person and not a greedy capitalist, congratulations. You’ve just been fired as CEO and the major shareholders just picked a replacement who will choose the second option.
Revenue growth down from 3% to 2% is significant, especially considering that’s an even bigger hit to growth in profits. They want to make their investors happy, they have a perfectly reasonable PR cover to raise their prices by a few dollars a month, so they’ll do it. What part of this is confusing?