In the US, there are multiple Supreme Court precedent cases that force profit-maximizing. Shareholders can sue the CEO and board to maximize profit seeking.
So yes, increasing shareholder value is enshrined in US law. Only private corporations can get around that rule. Also, a corporation cannot be forced to break the law to maximize profits, that’s just something most CEO’s are willing to do for fun.
I didn’t say people don’t redline publicly traded companies. I’m saying not being public doesn’t mean leadership won’t. I’ve personally seen it plenty of times.
Also, “fiduciary duty” (the “Supreme Court cases” I’m assuming you’re vaguely referring to) does not mean a CEO needs to always slam the gas at all times to maximize every single red cent at the cost of all medium and longterm considerations. This is a commonly parroted assertion by people online without a basis. “Fiduciary duty” and other obligations to the shareholders simply mean they can’t make obviously bad decisions that will hurt the shareholders. They don’t get hauled off by the Investor Police if they make a single longterm decision at the expense of a little short term profit.
All of this isn’t to say we don’t see it happen all the time anyway. But if it was so strict we’d see more CEO’s hauled off, not golden parachutes everywhere as they break their companies apart.
So yes, increasing shareholder value is enshrined in US law. Only private corporations can get around that rule.
This is true, with one exception.
There are non-profit corporations. They have to declare that they are non-profit at the time of foundation, though. They have to write that in the statute (idk what it’s called in English, it’s “Satzung” in German).