You used the word "obligation", not "priority". That's simply not correct, and it transfers responsibility from the people making these decisions to whatever nebulous system would enforce that "obligation".

If you look at the case law for fiduciary responsibility, then you'll find that executives have a strong obligation against self-dealing (decisions that clearly benefit them at the expense of the shareholder), but not much else. The "business judgment rule" makes it generally lawful for executives to make decisions that you, the shareholders, the judge, or anyone else might consider to be bad business judgment. It couldn't really be otherwise, since the difference between wasteful spending and a wise investment in the company's reputation might be unclear even decades later.

If shareholders disagree with an executive's business judgment, then their remedy is to fire that executive. That remedy has nothing specific to "making money"--the shareholders are just as free to fire a CEO for excessive attention to profit as insufficient.

▲

ktm5j 14 hours ago | parent [-]

You are nitpicking over semantics in a way that provides no value. For example, you have an obligation to pay your bills, otherwise bad things happen. There's nothing wrong with my choice of words.

	▲	tripletao 8 hours ago \| parent [-]
		I am legally obligated to pay my bills. If I don't, then my creditor can sue me and I will lose. If I still refuse to pay, then the state will enforce the court's judgment, if necessary with tasers and guns (like by physically seizing my property, or by locking me up for civil contempt if I try to conceal my property). You linked an article about fiduciary responsibility, and that's also a legal obligation. If I'm an executive and I route contracts to a vendor that I own for personal gain, then the shareholders can sue me and I will lose. The state will likewise enforce that judgment, if necessary with physical force. If I'm an executive and I choose to spend too much money (in someone's opinion) auditing a git hosting site for malware, then the possibility that I'll get sued for that and lose is zero. That's the "business judgment rule", which is a legal term of art that you can search. The shareholders might fire me, but only in the same way they could fire me for anything. The financial incentives are obviously as you say, but the difference between "things I do because the state will physically punish me if I don't" and "things I do because I want a high-paying job" is valuable to me. I could probably make more money than I do now if I worked for a payday lender or an online casino, but I don't think that obligates me to do so.