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Denman Rooke

Embracer Group lays off 1400 people.

CEO "(We) had to make difficult decisions."

The difficult decisions: "Our overruling principle is to always maximize shareholder value in any given situation."

@denmanrooke How do they continue to make money for the shareholders if they fire a large proportion of the people creating that value? No shareholder is an infinite resources. 21st century capitalism is delusional by design.

@denmanrooke CEOs are legally obliged to maximise shareholder value, so no surprise there.

Good skills with recommending a union. Even better than that is setting up co-operatives!

@dajb oh yeah, I know. Just pointing out the obvious absurdity. And I agree. Unions are great. Worker Cooperatives are great. And even better are Union co-ops for the best of both for a united labour movement.

@dajb @denmanrooke this is true up to a point. The timescale over which that value needs to be realised has no set legal limit (at least definitely not here in Sweden), the legal requirement is that the CEO and board are required to act in good faith towards the betterment of shareholder value. It is perfectly possible, and reasonable, that by taking into account the interests of other stakeholders (e.g. staff and customers) over short term shareholder interest you benefit them in the long term.

@dajb @denmanrooke now they are beholden to the shareholders for their job, and so if the shareholders are dominated by those after a quick return then the CEO will be incentivised to prioritise it (likely here with the Embracer group), but there is no legal requirement to do so.

@dajb @denmanrooke

Are they though?

I'm not convinced they are so legally bound. It's was a convenient scape goat by bosses in the 80s which has become an inconvenient dogma in the business class of the 2010s.

You are running a business, not an investor daycare.

@dajb @denmanrooke I'm not sure what you're basing that off. Embracer is a Swedish company, and as far as I know there is no such fiduciary duty in Sweden.

@RinguPingu Yeah, read the rest of the thread, I did some more homework @denmanrooke

@denmanrooke The real difficult decisions: "Okay, so who want chicken and who want meat?"

I doubt they have difficult decision if can easily make a huge mistake, don't knowledge it's was on fault and they must be the first to suffer consequences.

@denmanrooke "We had to make difficult decisions, so all of us in c-suite have agreed to pay cuts in line with the lowest paid worker and....

I'm sorry, I could finish writing that for laughing and dropping the keyboard.

@signalthirteen "We deserve ridiculous high pay because of how risky being an entrepreneur is. High risk, high reward... except when taking the risk doesn't pay off, we pay ourselves a lot and fire everyone"