this post was submitted on 29 Mar 2024
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[–] intensely_human@lemm.ee 1 points 7 months ago

The perception of profit is a more powerful force than actual profit.

Markets select for profit by simply trimming away the things that don’t make profit.

Boards of directors select for the perception of profit by firing CEOs who don’t provide them with that perception.

These systems are both operating. The companies that don’t make a profit will still die. It’s just that under this system, a company that’s on track to making profit can be redirected by a Board onto a path where they aren’t, because of that second mechanism.