Kyros on 28 July 2008
Can somebody please quote me where it is said that it is the legal obligation of a CEO to maximize profits?
The CEO is appointed by shareholders (through the board). Shareholders own the company and it is the obligation of the CEO to lead the company in a way that is in the interest of the shareholders otherwise they fire him.
That is normally making money (profit). But the emphasis of shareholders can be different. There are some who want to make as much money as possible short-term. There are people who have a more long-term investment and governments often also have shares in companies and care more about stability and job creation.
