Circuit City to liquidate V2

andre kesteloot andre.kesteloot at
Mon Jan 19 11:07:30 CST 2009

Michael O'Dell wrote:
> that should become a case study in B-school - how to completely destroy
> a business in one easy lesson.
> the shareholders should have sued the incompetent bastards into oblivion
> 	-mo

US Law clearly states that the main responsibility of the Board is to 
increase value to shareholders.
The problem is that the measurement is performed every quarter (Wall 
Street analysts requirements, etc) hence it is most tempting to increase 
short term value of the shares (by maximizing short-term profit to the 
expense of long-term one).
Bonuses to CEOs and CFOs are based on short-term profit.

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