Why should shareholders expect an immediate profit? Staking money in a company is a gamble, not an automatic right to a pathway to a get rich quick scheme. This is what’s wrong with capitalism today and why so many suffer at the expense of a few.
Too many investors think short term rather than long term sustainability. Slashing RTP will yield a short term boost but nothing more. If the company is rotting underneath, it has no future in terms of sustainability. Ripping off your customers, for example, is not sustainable.
Also, some profit for the long haul is better than no profit at all through going bust. So why is sustained profit ditched in favour of short term boom?
I’ve never owned a business but it even shocks me how badly some companies are run. Stick me as CEO and I’m pretty sure I could make a better fist of it than the CEOs of some companies...and I’m being serious.
The prime objective of a CEO is to cut costs and increase profit.
Hence they get a nice big fat bonus for meeting targets.
They are generally ruthless and cut throat, no share holders want a Mr nice guy in charge.
The first time dividends are down, you would be out on your arse.