Advancing a Free Society

Three Political Appointees versus 547,461 Shareholders

Saturday, May 14, 2011

Corporation-haters want you to believe big corporations are run in the interests of greedy executives. This is wrong: U.S. corporations align the interests of executives with their bosses, the shareholders. If executives do not act in the interests of shareholders, they will be gone and rather quickly.

The National Labor Relations Board, comprised of three political appointees, has just ruled Boeing’s new $1 billion South Carolina plant illegal because it was chosen to “retaliate” against organized labor. Boeing claims it chose South Carolina, which happens to be a right to work state, for a large number of reasons. One was the need to assure steady production of its new 787 Dreamliner without the threat of strike.

Boeing’s management would not base such a major investment decision on the desire for “retaliation.” It decides on the basis of what serves the interests of its 547,461 shareholders.

Continue reading Paul Gregory…

(photo credit: jnsabino)