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by PeterisP 1871 days ago
I don't understand what the target audience of your suggestion is - it's certainly not something CEOs, managers or employees can do.

I mean, there's a strict hierarchy there of who answers to whom and who gets to choose who to work with.

If the CEO tells the board "our growth target this year is 2%, our growth max is 10%, if we grow more than that I'm concerned about the pressure on my employees and my goal is to have a great and sustainable place to work and not to fill the universe with paperclips" then the board is likely to answer "it seems that our goals are not aligned, you'll be replaced with someone who does not share your concerns". If the board tells something like that to shareholders, then there's going to be a shareholders' meeting to replace the board.

"We're not letting you into the board if you disagree with it" - who's "we"? CEO's certainly can't say that unless they happen to be majority shareholders since e.g. founding the company; CEOs don't get to veto who comes on board, the board gets to choose who will be appointed CEO.

"you'd better price this assumption into the stock if you want to hold stock." - those who bought the stock get to set the rules including changing most company bylaws, so it's a legitimate tactic to buy stock in a company that's focused on being a great workplace instead of growth (i.e. the stock is likely to be cheap due "pricing in that assumption"), then destroy that assumption and replace the management to focus on growth, and sell the (now more expensive) stock. And it's very likely to happen since there are organizations whose whole business is to identify such opportunities and execute on them.

You don't have to grow forever just because you're a company, you're required to try to grow forever because the company shareholders want to. Companies can register as a public benefit corporation iff shareholders choose to do so, it's certainly not a way for someone to stop having shareholders.

1 comments

The target audience of my suggestion is founders who don't yet have board members or CEOs who currently have like-minded board members, and who don't currently have public ownership.

You're right, once you've given up ownership to the public, it's a little too late for the current legal entity. But it's not too late to quit your job and start a new workplace.

Okay, that makes sense. However, that's plausible only if the founders can afford to start a new workplace from their savings alone without ever attracting external investment. A fully bootstrapped company can keep full control, but any significant investment will require the company to cede that control and have a "standard" board structure that can ensure that the interests of the owners are taken into acocunt.
In other words, founders without investors. They seldom have a lot of employees though.