Alex Tarnava

It was the Dodge motor company against the, or sorry, the Ford motor company against the Dodge brothers who were investors in Ford at the time.

And, uh, Henry Ford sent out a shareholder, you know, letter announcement saying that, uh, he planned to reduce the car cost of the cars, you know, for sale and increased employee wages and benefits because he wanted to live in a country where everyone could afford a Ford.

They were on massive back order.

They couldn't make the cars fast enough.

I bet.

Before he wanted to do these things.

Mm-hmm.

And the Dutch brothers said, well, no, we invested to make money.

We don't care about your ethics and morality.

Your job is to make us more money.

You should be raising the cost.

You're on back order and you should be looking for cheaper labor.

I didn't know that.

And they went all the way to the Supreme Court of Michigan and the Dodge Brothers won.

Really?

And that set the precedent of shareholder primacy.

Now, what that means is at the executive level, the fiduciary duty of any executive is to maximize profit for the shareholder.

And they have a legal obligation to do that.

If they don't do that, then they can be sued.

They can be tried.