Posted September 25, 2021
low rated
When CD Projekt went public, a number of investors bought the company aiming to make the company bigger and get profit from it. Inverstors are usually people who don´t care what the companies they buy are about. They want to profit in the short, middle and/or long term. That´s not really a bad thing in itself. But when investors buy a number of companies and many of them are different, the investors who have become owners (by buying a portion of the company with the stocks), need to find somebody to manage each company they now own. And they do it because they usually don´t know anything about the product their companies develop or sell and because they can´t manage every company they own. And here is where everything really goes to shit.
When the owner or the investors of a big company are not interested in ruling said company, they hire a person (or several people) who is given the position of CEO. According to the wikipedia, a CEO is a person who is in charge of managing a company. The CEO of a corporation or company typically reports to the board of directors (usually owners or investors) and is charged with maximizing the value of the business. Which may include maximizing the share price, market share, revenues or another element. In the non-profit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission.
A CEO aims to get max profit while managing the company. Which might be a short term position. And so, usually, to retain that CEO position for as long as possible, the CEO seeks to maximise inmediate profit to justify before the investors, his/her hiring. Long term profits and company viability be damned.
For the CEOs, it is not only about earning their big salaries (with probably yearly big money incentives based on inmediate companie´s moneymoney profits). It´s also a matter of short term survival. The CEO not only needs to fulfill profit objectives (or even better, surpass profit predictions by as much as possible), the CEO also knows that there would be other people aiming to be the CEO themselves, lurking nearby and trying to convince the investors to make changes in the management. So, the CEO would do anything and everything in his/her hands, to try to convince the investors, that he/she is the best person to grant the most profits. And since the income balance is usually yearly, it is only logical that the CEO will seek max profits in the very short term. Why would the CEO care about the long term profits or company survival, if he/she will lose his position sooner rather than later and the company belongs to other people?
So, in GOG´s case, we have a person (or a number of people) managing a company he/she don´t give a shit about. And to get as much profit as possible, the CEO is trying to copy the business model of the biggest and most successful company in the market. Which is... Exactly; Steam.
Principles? To hell with that, inmediate moneymoney profits is what matters at the end of the year. And if that inmediate big profits hurt GOG, someone else will take care of that problem (or not) in the future. And if GOG dissapears next year, the CEO would not give a shit, and will probably find some other company to work for. And in the meantime, his/her bank account will have lots of beautiful numbers.
The only way the company will change its course right now, is if for some reason GOG losses benefits and stock value.
https://en.wikipedia.org/wiki/Chief_executive_officer
This kind of shortsighness affects the majority of the occidental companies and governments.And that´s why, asian companies and countries (specially China, Japan and India) are taking over the world.
When the owner or the investors of a big company are not interested in ruling said company, they hire a person (or several people) who is given the position of CEO. According to the wikipedia, a CEO is a person who is in charge of managing a company. The CEO of a corporation or company typically reports to the board of directors (usually owners or investors) and is charged with maximizing the value of the business. Which may include maximizing the share price, market share, revenues or another element. In the non-profit and government sector, CEOs typically aim at achieving outcomes related to the organization's mission.
A CEO aims to get max profit while managing the company. Which might be a short term position. And so, usually, to retain that CEO position for as long as possible, the CEO seeks to maximise inmediate profit to justify before the investors, his/her hiring. Long term profits and company viability be damned.
For the CEOs, it is not only about earning their big salaries (with probably yearly big money incentives based on inmediate companie´s moneymoney profits). It´s also a matter of short term survival. The CEO not only needs to fulfill profit objectives (or even better, surpass profit predictions by as much as possible), the CEO also knows that there would be other people aiming to be the CEO themselves, lurking nearby and trying to convince the investors to make changes in the management. So, the CEO would do anything and everything in his/her hands, to try to convince the investors, that he/she is the best person to grant the most profits. And since the income balance is usually yearly, it is only logical that the CEO will seek max profits in the very short term. Why would the CEO care about the long term profits or company survival, if he/she will lose his position sooner rather than later and the company belongs to other people?
So, in GOG´s case, we have a person (or a number of people) managing a company he/she don´t give a shit about. And to get as much profit as possible, the CEO is trying to copy the business model of the biggest and most successful company in the market. Which is... Exactly; Steam.
Principles? To hell with that, inmediate moneymoney profits is what matters at the end of the year. And if that inmediate big profits hurt GOG, someone else will take care of that problem (or not) in the future. And if GOG dissapears next year, the CEO would not give a shit, and will probably find some other company to work for. And in the meantime, his/her bank account will have lots of beautiful numbers.
The only way the company will change its course right now, is if for some reason GOG losses benefits and stock value.
https://en.wikipedia.org/wiki/Chief_executive_officer
This kind of shortsighness affects the majority of the occidental companies and governments.And that´s why, asian companies and countries (specially China, Japan and India) are taking over the world.
Post edited September 25, 2021 by arrua