[bluecheese452]

That is mostly true but a bit of a simplification. They exist to do what the people who have power want them to do which is not always strictly profit maximization.

A ceo may realize rto will decrease profits but do it anyway because it increases the power delta between him and the workers.

[nervousvarun]

"not always strictly profit maximization."

Maybe in the short-term but public companies with shareholders won't allow this in any sort of long-term way right?

[bluecheese452]

Not allow it? They insist upon it!

The controlling votes are all part of the same social class. They would gladly give up a small amount of profit to keep the distance between them and the workers as large as possible.

[nervousvarun]

To the extent it doesn't negatively impact the stock price sure but you would agree the CEO and any sort of power-trip they have is ultimately beholden to that right?

[bluecheese452]

If he goes against what they want absolutely. If he introduced a 4 day work week for example he would be in big trouble.