Fiduciary Duty

[keggerz]

How is it that these "CEO's" can get away with what they do?

 

http://cyber.law.harvard.edu/trusting/unit5all.html

 

fiduciary duties. Fiduciary duties fall into two broad categories: the duty of loyalty and the duty of care.

 

http://definitions.uslegal.com/b/breach-of-fiduciaryduty/

 

A fiduciary duty is an obligation to act in the best interest of another party. For instance, a corporation's board member has a fiduciary duty to the shareholders,

Edited November 20, 2008 by keggerz

[Furd]

If the company board of directors (or other appropriate authority) approves the salary, bonus or whatnot, its kinda difficult to maintain a claim that the CEO breached a duty to the company.

[keggerz]

If the company board of directors (or other appropriate authority) approves the salary, bonus or whatnot, its kinda difficult to maintain a claim that the CEO breached a duty to the company.

the Board would also have a FD too, no? and just because something is approved doesn't make it in the best interest of the "shareholders"

 

I know its a stretch because people that hold positions at these big companies mainly wear teflon coated suits but there is no doubt that "some" of these executives one way or another have breached their fiduciary duties.

 

let's use the Lehman bros exec as an example(i think it was Lehman Bros)...didnt that exec walk away with what 25 million for 30 days of work?

One would have to surmise that Lehman Bros didnt have their problem jump up and punch them in the face the day before the guy walked with 25million or whatever his figure was

Edited November 20, 2008 by keggerz