Yes, thats part if what I was talking about. The shareholders have unreasonable and unrealistic demands. Companies cannot infinitely have increasing profits year over year, but that is what shareholders demand. So the execs try to achieve those unreasonable demands, which results in overhiring because of course if more people work in a game then obviously the games will be done faster and better resulting in more profit, according to their thinking.
Im just saying that while executives are being greedy, they are only one cog in the machine.
Don’t forget that executive compensation is often significantly comprised of stock or stock options. By feeding the shareholders, they’re feeding themselves.
But does execs gain bonuses based on what shareholders gains ? If yes, they are more likely to make more gain for the shareholders.
Yes, thats part if what I was talking about. The shareholders have unreasonable and unrealistic demands. Companies cannot infinitely have increasing profits year over year, but that is what shareholders demand. So the execs try to achieve those unreasonable demands, which results in overhiring because of course if more people work in a game then obviously the games will be done faster and better resulting in more profit, according to their thinking.
Im just saying that while executives are being greedy, they are only one cog in the machine.
Don’t forget that executive compensation is often significantly comprised of stock or stock options. By feeding the shareholders, they’re feeding themselves.