Should a good CEO focus on shareholders and the business?

[M Anthony]

I have started doing some penny stock trading, and making a pretty penny.

Although, I have noticed a trend that many CEO's post updates and messages that are 90% always directed to their shareholders, rather than customers, or the business in general.

Some companies twitter accounts are 100% for investors. Every tweet, such as scotttrade issues, or other things are strictly for shareholders, It seems as though that doesn't seem right.


...Is this normal, and an okay thing? Keep in mind, the stocks go up, and I have made a large amount of money, so if your thinking all penny stocks are scam, it sure isn't scamming me.

[Qwerty]

CEO primary responsibility is to the stockholders (In theory. Selfies and other perks, bonuses, stock options, life insurance for family, pension, in practice.) Company facebook site is appropriate for communicating with everybody else as well; also there's a whole department to market and assuage customers and another to interface with workers and a third department to contract with suppliers and a fourth for general PR, in any "real" company--who knows for penny stocks?

[arunan]

It is normal. Shareholders are the owner of the companies. CEOs post are determined by the company's board of directors and the board of directors are selected by Shareholders. In most case, board of directors are the major shareholders of those companies. So, CEO have to respect the shareholders to keep his/her position.

[mrreliable3599]

It's the CEO's job to focus on company profits. That's the shareholder perspective. The CEO hires executives and managers to focus on the customers. It's not an "either" "or" thing.

Don't fall for the B.S. that company profits are somehow bad. That kind of stuff is spewed by political extremists who want to get class warfare all whipped up so they can benefit. Those ilk of people think it's great when their 401k's earn lots of money for their retirement from oil and manufacturing stocks, but they'll hypocritically attack anyone else who earns money from those activities. Profit is nothing more than a reflection of value to customers. Personally, I'm glad Bill Gates is one of the richest people in the world. He created more value than most anyone throughout history.

[Douglas]

A company is in business ONLY to make money. A CEO is there to make sure the company makes a profit for the shareholders. If he can't, he runs the risk of getting fired for incompetency.

[Ray]

Shareholders aren't important. After all they only OWN the company.